Support is a price level where a stock finds buying interest, preventing it from falling further. It acts like a floor where the stock price often bounces back.
Resistance is a price level where a stock faces selling interest, preventing it from rising further. It acts like a ceiling, causing the stock price to fall back.
Trend Lines: Helps to show the direction of a trend. Moving Averages: Indicate support/resistance levels. Breakout Strategies: Helps in profit from price movements, especially when a stock breaks key support or resistance levels..
Pivot Points: Pivot points are horizontal support and resistance levels calculated from the previous day's price action. Fibonacci Levels: Retracements: Helps to find entry points during pullbacks. Extensions: help determine target points in a trending market.
Peaks and Troughs: Helps to mark highs & lows for resistance and support levels.
Support and resistance levels are crucial for trading success. Modern stock scanners help determine optimal entry and exit points.