Mastering Support and Resistance

摘要

Support and resistance represent key turning points where the forces of supply and demand meet. These indicators can be used to evaluate how strong price levels are and can give you a narrower price range to work with. Sometimes you're not watching the market itself as much as you are looking out for how market participants react to what's going on in the market. Support and resistance are indicators where this occurs -when price falls to a new low and then rallies, buyers who missed out on the first dip will be inclined to buy if price returns to that level afraid to miss out for a second time. If enough buyers do so they can take control from the sellers, thereby creating a support level. When price makes a new high and then retreats, sellers who missed the previous break will be inclined to sell when price returns to that level.