How to Master Price Action & Support and Resistance Strategy
In the stock market, support and resistance are price levels that indicate where a stock's price is likely to pause or reverse:
Support
A price level where a stock's price is likely to bounce back up after falling. This happens when demand for the stock increases.
Resistance
A price level where a stock's price is likely to reverse downward after rising. This happens when selling interest for the stock increases.
Support and resistance levels are conditional because prices can eventually break through them. However, once a price breaks through a support or resistance level, it's likely to continue moving in that direction until it reaches another support or resistance level.
Technical analysts use support and resistance levels to identify price points where a trend might pause or reverse. Traders use support and resistance levels to decide when to buy or sell a stock. A basic strategy is to buy when prices are at support and sell when prices are at resistance.
PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.
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