Support

What is the reason behind non-horizontal support and resistance lines (wedge, triangle)?

What is the reason behind non-horizontal support and resistance lines (wedge, triangle)?
  1. Why does support become resistance?
  2. What happens when support and resistance meet?
  3. How do you identify support and resistance?
  4. What is support and resistance lines?
  5. Why is support and resistance important?
  6. Are support and resistance always horizontal?
  7. What is horizontal support and resistance?
  8. Which technical indicator is the most accurate?
  9. Where do you put support and resistance lines?
  10. What is support line?
  11. What is support level and resistance level?
  12. What is horizontal support?
  13. What is vertical and horizontal resistance?
  14. What causes stock Resistance?

Why does support become resistance?

Once the price breaks below a support level, the broken support level can turn into resistance. The break of support signals that the forces of supply have overcome the forces of demand. Therefore, if the price returns to this level, there is likely to be an increase in supply, and hence resistance.

What happens when support and resistance meet?

When support and resistance lines cross each other they can interact with a trend and cause it to breakout in a different direction. These are called confluence areas. These can help you anticipate breakouts from the main trend.

How do you identify support and resistance?

Support is a price point below the current market price that indicate buying interest. Resistance is a price point above the current market price that indicate selling interest. S&R can be used to identify targets for the trade. For a long trade, look for the immediate resistance level as the target.

What is support and resistance lines?

Support represents a low level a stock price reaches over time, while resistance represents a high level a stock price reaches over time. Support materializes when a stock price drops to a level that prompts traders to buy. This reactionary buying causes a stock price to stop dropping and start rising.

Why is support and resistance important?

Support and resistance are used to identify key levels where the trend in price has a greater probability of halting and possibly changing direction. It can be a specific price, or price area. Interpretation of the degree of significance of a level depends on a trader's time frame.

Are support and resistance always horizontal?

Trendline support and resistance levels are not drawn by horizontal lines, but by trendlines which can be upward sloping or downward sloping. Since the Forex market likes to trend, trendlines are often used to identify uptrends and downtrends.

What is horizontal support and resistance?

Support and resistance levels are horizontal price levels that typically connect price bar highs to other price bar highs or lows to lows, forming horizontal levels on a price chart.

Which technical indicator is the most accurate?

The Moving-Average Convergence/Divergence line or MACD is probably the most widely used technical indicator. Along with trends, it also signals the momentum of a stock. The MACD line compares the short-term and long-term momentum of a stock in order to estimate its future direction.

Where do you put support and resistance lines?

The basic trading method for using support and resistance is to buy near support in uptrends or the parts of ranges or chart patterns where prices are moving up and to sell/sell short near resistance in downtrends or the parts of ranges and chart patterns where prices are moving down.

What is support line?

A support line is used in technical analysis to determine a price level through which an asset is unlikely to pass. Using lines of support and resistance allows investors to assess whether an asset is near the top or bottom of its short-term trend.

What is support level and resistance level?

'Support' and 'resistance' are terms for two respective levels on a price chart that appear to limit the market's range of movement. The support level is where the price regularly stops falling and bounces back up, while the resistance level is where the price normally stops rising and dips back down.

What is horizontal support?

Horizontal Support is mainly a trend continuation YardCharts bullish pattern that is widely present in the current technical literature. It can be expected to take form in a market correction within a greater up trend.

What is vertical and horizontal resistance?

Genetic resistance that is effective at preventing successful attack only by certain races of a pathogen is called specific (or vertical) resistance, whereas resistance that is effective at preventing successful attack by all races of a pathogen is called general (or horizontal) resistance.

What causes stock Resistance?

Resistance in technical analysis is a price level that a rising stock can't seem to overcome. Once a stock reaches its resistance level, it often stalls and reverses. Resistance is caused by heavy selling that overpowers buying, and typically occurs at specific resistance price levels.

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