Chart Part 2: Support, Resistance and Trendlines

Draw the only 3 lines that matter: floors, ceilings and trend direction - with NEPSE-style examples.

By DigitalNepal · Updated 2026-10-04 · Verify current figures on official sources

Try it right here:

Chart school uses sample drawings - never real prices. Learn shapes here, practise on live charts without money, and read the risk guide before trading a single rupee.

Read any single day: who won, buyers or sellers.

Sample data for learning - not real prices. Hover any candle for O/H/L/C.

HammerBullish

After a fall, price drops hard inside the day but buyers push it back up near the open. Small body on top, long lower wick (2x body). Means sellers tried and failed.

Confirm first: Next candle closes above the hammer high, ideally with bigger volume.

Support is a price floor where buyers repeatedly step in; resistance is a ceiling where sellers repeatedly appear. They work because thousands of traders watch the same obvious levels.

A level touched 3+ times with reversals is real. A line connecting random wicks is imagination.

Steps

1Mark swing highs and lows
On the daily chart, circle clear peaks and valleys. Connect two or more rising valleys for an uptrend line, falling peaks for a downtrend line.
2Count the touches
Two touches = tentative. Three+ touches with bounces = a level the market respects. More touches, stronger level.
3Watch role flips
Broken resistance often becomes support (and broken support becomes resistance). Old ceilings turn into floors - plan entries there, not mid-range.
4Combine with candles
A hammer bouncing exactly off your support line is 10x more meaningful than either signal alone. Confluence is the whole game.

Good to know: Draw zones, not exact lines - a 2-3% band around the level. Price rarely reverses to the exact rupee.

Information last verified: 2026-10-04. Prices, fees, rules and requirements change - confirm on the official website or office before acting. DigitalNepal.tech is independent and not affiliated with any provider or government body.