Support and Resistance - the two concepts that will save you more money than...

Support and Resistance - the two concepts that will save you more money than any indicator.

SUPPORT = the floor. A price level where buyers consistently step in and push the price back up. Every time price drops to this level, demand increases and the price bounces.

RESISTANCE = the ceiling. A price level where sellers consistently step in and push the price back down. Every time price rises to this level, supply increases and the price falls.

THE RULES:
1. The more times a level is tested, the STRONGER it becomes
2. When support breaks, it becomes the new resistance
3. When resistance breaks, it becomes the new support
4. Trade the bounce, not the break (until confirmed)
5. Round numbers (10, 50, 100) often act as psychological support/resistance

Before you learn any indicator, learn to draw these two lines. They are the skeleton that every chart is built on.

#Trading #Stocks #Forex #SupportAndResistance #Learning #TechnicalAnalysis #ChartPatterns #BeginnerTrader #StockMarket #FinancialLiteracy

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Madson Dariel @darielmadson8181

wait #4 is actually super helpful i used to always jump on breaks too early and get wrecked lol. took me way too long to realize patience is key with these levels
3 days ago

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