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Use Support And Resistance To Determine Buy, Sell And Hold Signals

1 17 1
11.08.2021

Unfortunately, many technical analysts plaster all kinds of complicated indicators all over their charts, which can scare away newer investors.

However, support and resistance levels are easy-to-understand indicators that even the newest of newbies can start using right away.

Learning to identify these levels will simplify your decisions about entering and exiting a stock.

Support is a price level where the stock tends to bottom out when it’s declining

You’ll often find that a stock’s area of support is a price level where demand, or buying power, is strong enough to prevent the price from declining further.

This means the price is more likely to bounce off this level rather than break below it.

However, once the price breaks through this level, it is likely to continue dropping until it finds another support level, at a lower price.

Hitting A Ceiling

Resistance is the opposite.

It’s where the stock price tends to hit a ceiling as it’s trying to move higher. At this level, selling power is strong........

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