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.

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26 comments:

  1. ViolinDevFebruary 20, 2011 at 6:21 AM

    i am hoping to invest in cisco!

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  2. AhyFebruary 20, 2011 at 7:19 AM

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

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  3. AnonymousFebruary 20, 2011 at 8:22 AM

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

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  4. Electric AddictFebruary 20, 2011 at 8:24 AM

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

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  5. edFebruary 20, 2011 at 8:29 AM

    rather be going through resistance level than support

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  6. BrendanFebruary 20, 2011 at 8:41 AM

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

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  7. Aaron M. GipsonFebruary 20, 2011 at 8:49 AM

    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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  8. S.S.February 20, 2011 at 9:10 AM

    Very helpful post man. Thanks

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  9. PekkaKFebruary 20, 2011 at 9:22 AM

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

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  10. ShowtekFebruary 20, 2011 at 9:30 AM

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

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  11. AnonymousFebruary 20, 2011 at 9:36 AM

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

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  12. WolfdogFebruary 20, 2011 at 9:47 AM

    Yea thanks for clearing up the two.

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  13. Every DayFebruary 20, 2011 at 9:56 AM

    very informative videos. Thanks!

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  14. UnknownFebruary 20, 2011 at 10:15 AM

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

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  15. plumpkinFebruary 20, 2011 at 10:21 AM

    thanks for this infos

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  16. Anonymous.February 20, 2011 at 11:46 AM

    Tres informative.

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  17. Guys I'm Freaking Out!!!February 20, 2011 at 12:28 PM

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

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  18. InnovationsFebruary 20, 2011 at 12:31 PM

    <3 forex

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  19. The GovernorFebruary 20, 2011 at 12:31 PM

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

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  20. SpongeworthyFebruary 20, 2011 at 1:01 PM

    Good stuff, my dad plays around with money exchanging.

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  21. ChefJRHFebruary 20, 2011 at 1:19 PM

    This is very good information, thanks!

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  22. mtnFebruary 20, 2011 at 2:09 PM

    interesting post, as always. thanks!

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  23. TheInternetViewFebruary 20, 2011 at 3:23 PM

    Pretty clear way of explaining it, thanks.

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  24. obiFebruary 20, 2011 at 10:45 PM

    good tips thanks.

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  25. MattFebruary 20, 2011 at 10:48 PM

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

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  26. HaraldFebruary 21, 2011 at 4:50 AM

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

    ReplyDelete

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