Support and Resistance Explained: The Ultimate Beginner's Guide
Support and Resistance Explained: The Ultimate Beginner's Guide Support and Resistance are two of the most important concepts in technical analysis. Almost every professional trader uses these levels to identify potential buying and selling opportunities. What Is Support? Support is a price level where buyers become stronger than sellers. When the market reaches this area, the price often stops falling and may reverse upward. Support acts like a floor that prevents the price from moving lower. What Is Resistance? Resistance is a price level where sellers become stronger than buyers. When the market reaches this area, the price often stops rising and may reverse downward. Resistance acts like a ceiling that limits further price increases. How to Identify Support and Resistance Look for areas where price has: Rejected multiple times Reversed several times Consolidated before a strong move Created swing highs or swing lows The more times a level is respected, the stronger it becomes. ...