Support and Resistance Level

 

 The concepts of trading support and resistance levels are undoubtedly two of the most highly discussed attributes of technical analysis. As part of analyzing chart patterns, these terms are used by traders to refer to price levels on charts that tend to act as barriers, preventing the price of an asset from getting pushed in a certain direction.

At first, the explanation and idea behind identifying these levels seem easy, but as you'll find out, support and resistance can come in various forms, and the concept is more difficult to master than it first appears.

Support occurs where a downtrend is expected to pause due to a concentration of demand.

Resistance occurs where an uptrend is expected to pause temporarily, due to a concentration of supply.