TCS

ChatGPT said: A trendline resistance zone refers to an area on a price chart where an upward movement in price is repeatedly halted by a downward-sloping trendline or horizontal resistance level. This zone acts as a barrier where selling pressure outweighs buying pressure, often leading to price reversals or consolidations. Trendline: Drawn by connecting at least two or more lower highs in a downtrend. Acts as a dynamic resistance level — sloping downward over time. Zone Concept: Instead of a single line, traders consider a zone or area around the trendline due to slight price deviations or false breakouts. This zone accounts for market noise, volatility, and wick overshoots. Interaction with Price: When the price nears or touches this resistance zone, it often pulls back. If broken with strong momentum and volume, it can lead to a bullish breakout. Confluence Factors: Resistance is stronger if the trendline coincides with other technical factors such as: Previous swing highs Moving averages Fibonacci levels RSI divergence