SUPPORT AND RESISTANCE
Support and resistance
Is a concept in technical analysis that the movement of the price of a security will tend to stop and reverse at a certain predetermined price levels.
SUPPORT
A support level: Is a price level where the price tends to find support as it is going down.
This means the price is more likely to "bounce" off this level rather than break through it.
Broken support turns into resistance.
This means the price is more likely to "bounce" off this level rather than break through it.
Broken resistance turns into support.
We call these support and resistance area's by one word - ZONE.
TRENDLINE
A trendline is a line connecting two or more lows or two or more highs, with the lines projected out into the future.
Is a concept in technical analysis that the movement of the price of a security will tend to stop and reverse at a certain predetermined price levels.
SUPPORT
A support level: Is a price level where the price tends to find support as it is going down.
This means the price is more likely to "bounce" off this level rather than break through it.
Broken support turns into resistance.
RESISTANCE
A resistance level is the opposite of a support level. It is where the price tends to find resistance as it is going up.This means the price is more likely to "bounce" off this level rather than break through it.
Broken resistance turns into support.
We call these support and resistance area's by one word - ZONE.
TRENDLINE
A trendline is a line connecting two or more lows or two or more highs, with the lines projected out into the future.