Support And Resistance

Support And Resistance is a very important concept in Share Market or Crypto or any Financial Market!

Recognizing the strength of support and resistance levels . Understanding support and resistance in detail for better trading Understanding in detail how support and resistance affect market movements

What is Support? Support is the level where the price of the share stops falling and there is a possibility of it moving upwards again. It can also be seen as a kind of “bottom” because it is the bottom where instead of falling further, the price stops and starts rising again. This is what we call Support.

For example: – If a stock is trading at Rs 500 and its fall comes down to 490, but this fall stops at 490 and the stock starts moving upwards again, then its lining of 490 becomes support!
What Is Resistance:- Resistance is the point at which the price decreases after rising and then begins to rise again.   the ceiling! That is (Selling) because it is the top where it is very difficult to increase the price!

For example:- If you are trading a stock at 200 and after reaching 200 its rise stops and then the price starts falling downwards rapidly, then the level of 200 is the resistance!

What is the difference between Support and Resistance?

Support:- It is the lower level where the price stops instead of falling and again the price of the share starts increasing here!

Resistance:- This is the top level when the price stops rising and the share price begins to decline once more.
How to use Support and Resistance?

(Buy) To buy a share, when a stock reaches the support and you feel that the price of the share is going to increase, then you can buy the share from that level!

(Sell) To sell a share, when a stock reaches resistance and you feel that now the price of the share may fall, then you can sell the share at that level. Based on support and resistance, you can also put a stop loss on your trade. Stop loss is put to prevent loss in trading and the target is put at the place where you trade to make a profit. You can put a target according to your requirement and earn profit.

How to identify support and resistance?

To identify support and resistance, you can look at the chart pattern.

Like candle’s head and shoulder, triangle and double top, double bottom, support and resistance can be estimated.

You can also use technical indicators.

Like: – Moving Average, Rsi and Macd can sometimes be used to identify support and resistance levels.

Conclusion:- In this article we have discussed the basics of Support and Resistance! By using Support and Resistance correctly, you can make your trading decisions more accurate! And to get such stock market related education and news, stay tuned to 24 News Campus Online. Thank you