Support and resistance play a very crucial role in trading. Support and Resistance are the most discussed topic among traders because this is the key factor of trading for them. Support and resistance are the predetermined levels where can stock can stop or reverse. Support and resistance also shows the demand and supply of the stock. Support shows the chances of increasing demand and resistance shows the supply level. If you are in the trading profession and don’t know about support and resistance then you are in the right place.
1. SUPPORT: Support is a level of price where downtrend of stock can pause. As the price of the stock drops than there can be chances of an increase in demand. When the price pause after falling than there can be more buying and there can be chances of the reverse of the price of the stock. Support can be identified through different indicators or price action. This is up to you that what you use to identify support.
2. RESISTANCE: Resistance is a level of price where uptrend of the stock can pause and there can be chances of profit booking. Resistance is a level where the demand for stock decreases and supply increases so the price of stock stops at that level and can fall from that level. You can identify the resistance level by using different indicators or price action.
Using support and resistance is very important for effective trading and if you don’t know how to use or identify the support and resistance then IFM TRADING ACADEMY can help you through providing the advance course of technical analysis which can help you to become the effective and pro trader. Feel free to contact us through the given contact options.