GAME OF PERCENTAGE IN WTT
In the last chapter, we learned the concept of the game of percentage in WTB support and resistance. In this chapter, we will continue learning the game of percentage in WTT support and resistance. This will give you a complete understanding of the game of percentage. Let’s start learning.
Lesson Highlights
Weak towards Top - Support
In the below image, you can clearly see that the support is at 24300 and it is WTT at 24400. The WTT percentage is 93.65%. What does this indicate? We will understand all the possible scenarios in Weak towards Top in support side in this case.
SCENARIO 1
Support is at 24300 and it is WTT at 24400. The WTT percentage is 93.65%. It indicates that the second-highest value is only 6.35% lower than the highest, meaning that the support will soon shift to 24400 — only if this WTT percentage keeps increasing. This suggests that the market, which was expected to reverse from 24300, will now reverse from 24400 due to the shifting of support at this level. This means the market will not fall till 24300; rather, it will reverse from 24400. We can conclude that the increasing percentage of WTT leads to a Bullish Market.
Please Note: Support from 24300 will shift to 24400 only when the WTT percentage, which is currently 93.65%, continues to increase, for example, to 95% … 99%, and then turns blue, indicating it is the highest. Once 24400 becomes the highest, 24300 will automatically become the second highest, and the yellow box will appear at 24300. However, this does not mean that the support is WTB, because the support has already shifted from 24300 to 24400 and due to the logic of second highest, there is yellow box at 24300. In this case, we need to ignore this WTB at 24300. If the WTB is at another strike price, we will consider it, but if the WTB is at 24300, we will ignore it. The only case, in which we will consider 24300 yellow box as WTB – If the Yellow Box at 24300 will be vanished (due to decreasing %age) and then again yellow box will appear at 24300 (due to increasing %age) only then we will consider this as WTB.
SCENARIO 2
In the above image, you can clearly see that the Support is at 24300 and it is WTT at 24400. The WTT percentage is 93.65%. Now, let’s assume the WTT percentage starts decreasing from 93.65%, to 90%, and finally 84%. What does this decrease in percentage from 93.65 to 84 indicates? It indicates that the highest value is becoming strong, which means that the support is at 24300 is becoming strong. As a result, the market will not reverse from 24400 rather it will fall till 24300 and reverse from there, we again conclude that the decreasing WTT percentage leads to Bearish Market.
SCENARIO 3
The WTT percentage decreased from 93% to 84%. Now, let’s assume the WTT percentage further declines to 75%, and then the yellow box disappears. What does this indicate? This process makes the support strong and creates bearish pressure on the support, increasing the probability that the support will break out. As a result, the market is expected to reverse from the next diversion to support, i.e., EOS-1. When WTT disappears, it creates bearish pressure.
Weak towards Top- Resistance
In the image below, you can clearly see that the resistance is at 24100 and it is WTT at 24200. The WTT percentage is 87.33%. What does this indicate? We will learn all the possible scenarios in Weak towards Top case in resistance side in this lesson.
SCENARIO 1
Resistance is at 24100 which is WTT at 24200. The WTT percentage is 87.33% It indicates that the second-highest value is only 12.67% lower than the highest, meaning that the resistance will soon move to 24200 — only if this WTT percentage keeps increasing. It means that the market, which was expected to reverse from 24100, will now reverse from 24200 due to the shifting of resistance at this level. This means the market will not fall from 24100; rather, it will reverse from 24,200. So, we can conclude that the increasing percentage of WTT leads to a Bullish Market.
Please Note: Resistance from 24100 will shift to 24200 only when the WTT percentage, which is currently 87.33%, continues to increase, for example, to 90% … 99%, and then turns blue, indicating it is the highest. Once 24200 becomes the highest, 24100 will automatically become the second highest, and the yellow box will appear at 24100. However, this does not mean that the Resistance is WTB, because the Resistance has already shifted from 24100 to 24200 and due to the logic of second highest, there is yellow box at 24100. In this case, we need to ignore this WTB at 24100. If the WTB is at another strike price, we will consider it, but if the WTB is at 24100, we will ignore it. The only case, in which we will consider 24100 yellow box as WTB – If the Yellow Box at 24100 will be vanished (due to decreasing %age) and then again yellow box will appear at 24100 (due to increasing %age) only then we will consider this as WTB.
SCENARIO 2
In the above image, you can clearly see that the resistance is at 24100 and it is WTT at 24200. The WTT percentage is 87.33%. Now, let’s assume the WTT percentage starts decreasing from 87.33% to 80%, and finally to 77%. What does this decrease in percentage from 87.33 to 77% indicate? It indicates that the highest value is becoming strong, which means that the resistance at 24100 is becoming strong. As a result, the market will reverse from 24100; it will not go to 24200. We can again conclude that the decreasing WTT percentage leads to a Bearish Market.
SCENARIO 3
In Scenario No. 2, the WTT percentage decreased from 87.33% to 77%. Now, let’s assume the WTT percentage further declines to 75%, and then the yellow box disappears. What does this indicate? This process makes the resistance strong and creates bearish pressure on the support, increasing the probability that the support will break out. As a result, the market is expected to reverse from the next diversion to support, i.e., EOS-1. When WTT disappears, it creates bearish pressure.
Conclusion
In this chapter of LTP Calculator free course, we learned about the game of percentage in WTT support and resistance on LTP Calculator. My motive with this chapter was to teach you the role of game of percentage in weak towards TOP support and resistance. This understanding will help you a lot in learning the detailed chart of accuracy 1.0.
So, keep learning the stock market with LTP Calculator, and believe me, one day you’ll also say, It’s a Baccho ka Khel.