The Basics: Most experienced traders will be able to tell many stories about how certain price levels tend to prevent traders from pushing the price of an underlying asset in a certain direction. We have price levels that are known as support. This terminology refers to prices on a chart that tend to act as a floor by preventing the price of an asset from being pushed downward. The ability to identify a level of support can also coincide with a good buying opportunity because this is generally the area where market participants see good value and start to push prices higher again. Resistance levels are also regarded as a ceiling because these price levels prevent the market from moving prices upward. What Is Support? Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined to buy and sellers ...
Daily Capital Market Dose: beginners guide for Indian stock market. Learn about Demat Account, IPO, Mutual Funds, NSE NIFTY, MCX Commodity Trading, Intraday Trading Strategies.
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