Support and Resistance Level?

chami1 · 1 Support and Resistance Level? Sun Sep 11, 2011 12:53 pm

chami1

Equity Analytic

Posts : 30
Equity Stars : 4877
Reputation : 3
Join date : 2011-03-06

wht's the meaning of support level and resistance level.....................
plz comment.............
thankz for evry cmnts..............

Last edited by Quibit on Sun Sep 11, 2011 7:06 pm; edited 1 time in total (Reason for editing : Please avoid using excessive ...................)

sriranga · 2 To learn......................... Sun Sep 11, 2011 1:33 pm

sriranga

Co-Admin

Posts : 6822
Equity Stars : 23031
Reputation : 2855
Join date : 2011-02-01
Location : London

Please refer the following link, may be it will help.
http://stockcharts.com/help/doku.php?id=chart_school:chart_analysis:support_and_resistan
Comments appreciated.

manojtharanga · 3 Re: Support and Resistance Level? Sun Sep 11, 2011 2:23 pm

manojtharanga

Stock Analytic

Posts : 19
Equity Stars : 4651
Reputation : 0
Join date : 2011-09-01

These terms often used in forex trading and we use same for our Technical analysis with charts. In simple terms, Support describes a price level that the share tried to cross below (Lower price level), but ultimately stayed above, whereas Resistance describes a price level that the share tried to cross above (Upper price level), but could not. This means it is recommended to sell a share when it reach to its resistance level (since there will be a resistance to go price up and possibility to drop price) and should try to buy shares when its reach to its support level (Since there will be a support to go price up). RSI would give you similar kind of information but it is different Indicator.
Please note that Technical analysis is not an exact science and it is sometimes difficult to set exact support levels

wcwchamara · 4 Re: Support and Resistance Level? Sun Sep 11, 2011 4:31 pm

wcwchamara

Senior Equity Analytic

Posts : 63
Equity Stars : 4746
Reputation : 9
Join date : 2011-08-17

http://forum.srilankaequity.com/t2952-support-and-resistance

saber · 5 Re: Support and Resistance Level? Mon Sep 12, 2011 10:21 am

saber

Equity Analytic

Posts : 34
Equity Stars : 4727
Reputation : 0
Join date : 2011-07-02

Here's a nice guide.
http://www.babypips.com/school/support-and-resistance.html

Full tutorial can be found at :
http://www.babypips.com/school

This is probably the best I found in web and I used to follow this too. Though it's written for Forex most of the technical things are applicable for stock trading as well.