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.

What is Support?

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.

What is Resistance?

Indicators and Strategie

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.

Pivot Points & Fibonacci Level

Peaks and Troughs: Helps to mark highs & lows for resistance and support levels.

Peaks and Trough

Support and resistance levels are crucial for trading success. Modern stock scanners help determine optimal entry and exit points.

Conclusion

Read our blog for details about support and resistance.

Arrow