I was reading resistance and support in the school of pipsology but am confused I can’t get what it all about. Please I need who will explain it for me. Thanks
What they are and how to use them are two different questions, and there is no point knowing what they are unless they can figure in your strategies.
A resistance is often defined as a level to which price rises but from which it quickly and dramatically falls, preferably at least twice. Look at EUR/USD daily chart for the last 2 years. The 1.1400 level resisted price in June 2019, showing it to be a potentially strong resistance level. In March this level again resisted a rising price, confirming its significance. The same price level resisted rising price in June and was only convincingly broken a month later after a week of trying.
If price falls to 1.1400, expect it to have good potential as a support level.
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It’s simply the top and bottom of where price has reached. S&r is quite subjective, often different people will see different levels.
When I plot it I look at the overall top and bottom and then plot the recent top and bottom.
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Support & Resistance indicates from where trend is reversal or pause in other word where price is having trouble crossing. Support describes a price level where a downtrend reversal or pause. Resistance describes a price level where a uptrend reversal or pause.
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Support represents a low level a stock price reaches over time, while resistance represents a high level a stock price reaches over time.
Checkout the threads below.