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Raphx

What is support and resistance?

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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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Support is basically a floor for price level. Resistance is the ceiling. If prices are falling, it will find support and when price is rallying it will find resistance. Once resistance is broken to the upside it will act as support. If support is broken, it will act as resistance.

 

Its important to understand where these levels are in trading. You can enter and exit at these levels.

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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!

 

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.

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I stumbled across this thread while doing a search for threads on support and resistance (why I was doing this is not important). But since the OP is long gone and this particular thread is in the Beginner's Forum, I'm posting my results here in hopes that I may save somebody some time (the last is, of course, the best :)).

 

Support and Resistance

Support and Resistance in a Volatile Market

 

Using Daily Support/Resistance for Intraday Trading

What is Support and Resistance?

 

Support and Resistance: Trading in Foresight

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Rigel, it was a funny :helloooo: not sarcasm

You'll notice I also gave the post a Thanks

(and I don't drop those around willy nilly)

 

:evil tongue: So you must really think he's trying to help ?? :pc guru:

:ciao:

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Zdo

why do you think he posted it if the intention was not to help?

 

From what I have seen of Db's posts, at least they have substance and value ie. I can look at charts and verify what is being stated.

 

This is a beginner's forum and I am sure any newcomer would appreciate that, whether you find any value or not is irrelevant.

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