A Tutorial on Support and Resistance - Part 1.
What are Support and Resistance ?
Support - Is the price level from where people expect maximum buying/demand to come.
1. Price is falling and it is expected to reverse and move up from Support.
2. Support level is always below current price level.
3. Is used to create buying positions or book profits in shorts.
Resistance - Is the price level from where people expect maximum selling/supply to come.
1. Price is rising and it is expected to reverse and move down from resistance.
2. Resistance level is always above current price level.
3. Is used to book profits in long positions or create shorts.
Other parts to be followed -
Part 2 - Why Support and Resistances are formed ? or Why they work ?
Part 3 - How to find/draw Support and Resistance ?
part 4 - How to trade using Support and Resistance ?
What are Support and Resistance ?
Support - Is the price level from where people expect maximum buying/demand to come.
1. Price is falling and it is expected to reverse and move up from Support.
2. Support level is always below current price level.
3. Is used to create buying positions or book profits in shorts.
Resistance - Is the price level from where people expect maximum selling/supply to come.
1. Price is rising and it is expected to reverse and move down from resistance.
2. Resistance level is always above current price level.
3. Is used to book profits in long positions or create shorts.
Other parts to be followed -
Part 2 - Why Support and Resistances are formed ? or Why they work ?
Part 3 - How to find/draw Support and Resistance ?
part 4 - How to trade using Support and Resistance ?