Simple definition (support, resistance)
hello friends
i would like to Explain a simple explanation for the support and resistance and their importance, and I hope you like it :- :accute:
What is support?:
The support is the price level which is believed to have such a strong demand insufficient to prevent the price from falling
More.
It makes sense and holds that while the price falls toward the support and becomes cheaper, the buyers Become more inclined to buy and sellers become less enthusiastic for sale, and with time the price reaches
The level of support, it is believed that the demand will be much more of the available and will prevent prices from landing to
Below the support.
The support does not always keep to what it is, and that any drop below the level of support is a sign of The Bears have won the oxen, and other words that sellers may have won on the buyers.
The fall below the support level refers to a renewed desire to sell and / or lack of desire or motivation For purchase.
The break of support and recording new lows indicates that sellers have won the battle, and They are willing to sell even at low prices.
In addition to this the whole, the buyers will not be forced to buy until the price drops below the Support level or below the last lower price.
When support breaks, the level of support will last may be the lowest level of this support.
Where is determining the level of support?
Usually determined by the level of support under the current price, but it is not uncommon for a security that is Trading at or near the level of support.
The technical analysis is not a specific science, and it is sometimes difficult to establish levels of support Entirely correct. In addition, price movements can be
Be volatile and fall below the support for a short period.