📊 Support & Resistance
Part of Complete Stock Market Learning Series
📌 What is Support?
Support is a price level where demand is strong enough to stop the price from falling further. At support, buyers become active and try to push the price upward.
- Acts as a price floor
- Buying interest increases
- Price often bounces upward
📌 What is Resistance?
Resistance is a price level where selling pressure is strong enough to stop the price from rising further. At resistance, sellers dominate the market.
- Acts as a price ceiling
- Selling pressure increases
- Price often falls downward
📈 Support & Resistance Chart Example
Below is a simple visual example showing how price reacts near support and resistance levels.
👉 Price moves between support and resistance until a breakout or breakdown happens.
🔍 How to Identify Support & Resistance?
- Previous swing highs and lows
- Multiple price rejections from same level
- Round numbers (100, 500, 1000)
- Trendlines and moving averages
💡 Trading Logic Using Support & Resistance
- Buy near support with confirmation
- Sell near resistance with confirmation
- Support break → becomes resistance
- Resistance break → becomes support
⚖ Important Note
Support and resistance zones are not exact lines but price areas. Always use confirmation like volume or candlestick patterns. This content is for educational purposes only.
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