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I have absolutely no experience in the financial markets. I recently read an article from Stocks and Commodities about support and resistance. Can anyone explain to me what these two terms mean? Sorry if this is a newbie question. I would really like some help. Thanks in advance! |
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There are different ways to identify support and resistance levels. Common methods are using moving averages such as the 200MA on a 5 minute chart. Other methods involve fibonacci work. I particulary use market profile, pivot points, and fibs to define my support and resistance levels. Also look for high volume areas. These can act as strong S&R points as well. My advice is to read, read, read. Equip yourself with market knowledge.