Support and resistance
the equation of demand and supply the battle between bulls and bears is what creates the market.
When the bulls are in control demand inconsequentially price increases when the bears are in control
supply.
Inconsequentially price decreases what makes the price go up and down is the presence of large buying
orders.
More buyers and sellers.
What makes the price go down is the presence of large selling orders more sellers and buyers when prices
move sideways there is equal strength between buyers and sellers.
This sort of equilibrium between the bulls the buyers and the Bears the sellers Montaigne's the price
within a specific trading range.
When the Bulls gain control over the players price will break out of the sideways trading range and
we start moving up on the other hand when the batters gain control over the balls price will break out
of the sideways trading range and we start moving down.
When looking at charts we are constantly looking at the interaction between both the buyers and bears
the sellers when strong buy in of course around the specific price level preventing the price from dropping
even further the price level is referred to as Sopore the support level is an area where buyers are
expected to take control over price action.
The logic behind support is that when the price drops down to a certain price level yet thrax interested
buyers and discourages sellers from selling at a lower price.
Support levels are generally located below current price levels.
The line at the bottom represents support when strong selling or calls around a specific price level
preventing the price from rising even further that price level is referred to as resistance the resistance
level is an area where sellers are expected to take control over price action.
The logic behind resistance is that when the price increases up to a certain level sellers are more
inclined to sell and Kashin and buyers are less interested in purchasing resistance levels are generally
located above current price levels.
The line at the top represents resistance
usually price trades near the support and resistance levels.
Therefore instead of finking support and resistance levels it is at times more appropriate to find support
and resistance areas or Zoom's.