support and resistance

Support & Resistance

What are they?

How do they matter?

Types of support and resistance

Support is the price level at which demand is thought to be strong enough to prevent the

price from declining further.

Resistance is the price level at which selling is thought to be strong enough to prevent the

price from rising further.

Resistance

support

What are Support & Resistance

• They identify high probability bound key decision zones for a bounce or break

• When they break it indicates further big move or change in trend.

• It's good to avoid trading into the support and resistance levels, they can be used

for targets and also stop loss

• Once broken the broken support level can act as a resistance level and vice versa.

How do they matter?

• Trend Swing highs and lows

• Cluster of highs/lows where

price consolidated

• As per wave patterns

Cluster low

Cluster low

Swing high resistance

Swing low support

Types of Support and Resistance

In wave patterns, 4th wave swing low can provide support

Images