Support and Resistance provides the insight to trader buying or selling decision. Where can you find Support and Resistance? You will find the Support at the Valley and Resistance at the Mountain.
The market moves in a series of mountains and valleys. When the mountain keeps forming higher and higher. It is an up trend. When the valley keeps going lower and lower. This is a down trend.
Support
Support is areas where price stop falling, demand is strong, those who may have missed the previous move up begin to step in to buy, institution and investors may add their positions, and speculators also step in to buy a higher low. So bulls are strong.
Resistance
Resistance is areas where price stop rising, supply is strong, those who may have fear to loss the gain begin to step in to sell and take profit, institution and investors may have their committed target and close their positions, and speculators also step in to sell a higher high. So bears are strong.
Disclaimer
The information presented here is for illustration purpose. It is not meant to be used for buy or sell decision. We do not recommend you trade base on what you read here. If particular strategy, technique, trigger are mentioned, they are meant as demonstration how it being used by some trader.
Trading in any financial instrument such as stocks, options, indices, currencies and future involve risk and should not undertake without learning from professional traders. Readers may carry out trading based on what they learnt, but all risks and potential financial losses are the readers own responsibility.
Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here.