Why 4200.? and The angry trader.

Rohit asks a very fair question:

“Sir lot of analyt are saying 4100 as benchmark for support,but according to it is 4200,so please tell us why 4200 ,because 4100 was low after election result so that is considered as support ,but abt 4200 pleae tell the reason”

My Notes:

True, 4100 was the post election low, therefore the logical place for identifying support. However, If I can locate a cluster of values, I usually use it as S/R. I am giving a chart below that explains this idea. I should also point out that all said and done, support and resistance levels are personal numbers, used to determine risk. We can have different levels and trade successfuly. (If you click on the chart you should be able to see a larger image, I hope)

I received some comments from traders who seemed to be angry (a) the market did not go down, and, (b) on my suggestion that below 4200, we should not buy on dips, not until the market shows signs of stability.

Easy does it. Anger hurts only the angry person. It certainly destroys your trading.