What is Support and Resistance

support and assistance The equation of demand and supply the battle between bulls and bears is what leads the market when the boys are in control the man and consequentially price increases when the Bears and in control supply and consequentially price decreases what makes the price go up and down is the presence of large buy orders more buyers than sellers what makes the price go down is the presence of large orders more sellers than buyers when price moves sideways there is equal strength between buyers and sellers this equilibrium between the Bulls the pioneers in the Bears the seller's maintains the price within a specific training when the ball's gain control over the Bears price will break out of the sideways trading range and we start moving up on the other hand when the Bears gain control over the Bulls price will break out of the side and will start moving now when looking at charts we are constantly looking at the interaction between balls the buyers and bears the seller's when strong buying of course around the specific price level preventing the price from dropping even further the price level is referred to as support their support level is an area where I hear is expected to take control over price action the logic behind support is that when the price drops down to a certain price level yet thanked interested buyers and discourages sellers from selling at a lower price support levels are generally located below current price levels the line at the party represents support when strong selling around the specific price level preventing the price from rising further that price level is referred to as resistance resistance level is an area where senators are expected to take control over price action the logic behind resistance is that when the price increases up to a certain level sellers are more inclined to sell and caching and buyers are less interested in purchasing resistance levels are generally looking above current price levels the line at the top represents places usually priced rates near the support and resistance levels therefore instead of thinking support and resistance levels it is at times more appropriate to Fink support and resistance areas or zones