Support and resistance
Support is a price level where the falling price tends to slow down or reverse. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, it is likely to continue dropping until it finds another support level.
Resistance is a price level where the rising price tends to slow down or reverse. The price is more likely to bounce back from this level rather than break through it. However, a break above this level opens the way for further price growth until it finds another resistance level.
Support and resistance are often created by:
- Previous highs and/or lows
- Moving Averages
- Fibonacci levels, etc.
Other articles in this section
- Williams’ Percent Range (%R)
- Relative Vigor Index (RVI)
- Force index
- Bulls/Bears Power
- Average True Range
- How to trade on central bank decisions?
- CCI (Commodity Channel Index)
- Standard deviation
- Parabolic SAR
- RSI (Relative Strength Index)
- Bollinger bands
- Moving averages
- Trend indicators
- Introduction to technical indicators
- Technical analysis
- Central Banks: policy and effects
- Fundamental factors
- Fundamental analysis
- Fundamental vs technical analysis