The entire financial market is based on two main factors Alex Gordon Jersey , demand, and supply. When we talk about supply-demand, the relationship between buyers and sellers comes automatically. Here, I bring the co-relation just because it has a quite strong connection with Support-Resistance level. Now come to the main point what the Support-Resistance is and how it is related to the profit-making strategy in the stock market.
What does the Support-Resistance Level mean?
The terms Support and Resistance themselves define its meaning. Support is the maximum price falling level which prevents the price from falling further. Resistance is the exact opposite of support level. When the high price points join together to form a level, considers as the resistance level. Resistance prevents the price from rising further. Generally Bo Jackson Jersey , the support level is the indication of the upcoming bullish trend while the resistance indicates the future trend is going to be bearish.
Buyers-Sellers relationship in a Support-Resistance level
Buyers' demand power becomes high after touching the support level. When the price bounce from the support, it indicates buyers' interest is going to be high now. The opposite happens in the case of resistance. From the level sellers' selling opportunity start to rise.
How to find the Support-Resistance level in a stock?
There are different ways by which traders can identify the upcoming price action. By using various technical tools, indicators, oscillators it can be identified.
By applying Oscillators- Oscillators like RSI, Stochastic George Brett Jersey , MACD etc can help to find out the Support-Resistance level. Just for example, when RSI reaches an overbought phase, from there you can draw resistance level and from oversold, support level.
By applying Indicators- Just like oscillators, there are indicators too such as Pivot point Kansas City Royals Jersey , Alligator, Fractal etc. For example, the Pivot point clearly shows the Support-Resistance level.
Multiple Support-Resistance levels- In a single script, there can be multiple support resistance levels. Suppose price breaks a resistance level and goes up after that it creates another higher resistance level. Therefore, the previous resistance becomes support now. Hence Gerrit Cole Jersey , now there are two supports of the script. One is the old support level, the other is new.
Breakout Strategies- Sometimes, after breaking Support-Resistance level, price creates higher-high, higher-lows Jose Altuve Jersey , lower high-lower-lows points. The strategy considers as the price action.
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How Much Money do YouTubers Make From Their Channel Business Articles | September 15, 2017
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