Sunday, February 20, 2011

Charting, Support and Resistance





Support:

A support level is a price level where the price tends to find support as it is going down. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, by an amount exceeding some noise, it is likely to continue dropping until it finds another support level.

Resistance

A resistance level is the opposite of a support level. It is where the price tends to find resistance as it is going up. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, by an amount exceeding some noise, it is likely that it will continue rising until it finds another resistance level.

27 comments:

  1. Support and resistance. Thanks for clearing that up. I always confuse these two.

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  2. Aah now I see clearly, I don't this issue in it's entirity! you are a wise young grasshopper

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  3. good stuff! Investing is a very interesting and potentially highly profitable. Thanks for the info

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  4. rather be going through resistance level than support

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  5. thanks for clearing that up for me! didnt know the difference really

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  6. LOL a couple more weeks of this good knowledge and I will be just about set as far as setting up my own strategy. Really glad I found this blog!

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  7. Very helpful post man. Thanks

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  8. I did the usual mistake that I started trading before I knew the basics... Good stuff.

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  9. Helpful videos, majoring in Economics next year and this really can give me a leg up

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  10. thanks for the great info (and videos!), we won't confuse support and resistance anymore :)

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  11. Yea thanks for clearing up the two.

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  12. very informative videos. Thanks!

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  13. Very insightful. I have learned SO much from these weeks of reading your blog.

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  14. I used to work at Global Forex. This stuff can be sort of tricky.

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  15. very helpful but im scared to invest, i've lost alot of money in the market

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  16. Good stuff, my dad plays around with money exchanging.

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  17. This is very good information, thanks!

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  18. interesting post, as always. thanks!

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  19. Pretty clear way of explaining it, thanks.

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  20. Gonna keep reading, see if I can make some sense of it!

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  21. trading is like gambling if you don't do your 'homework'

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