- A price level at which the buying expected to place.
- Support Levels are price at which large number of buyers expected to enter the market.
- We find out this by identifying on the charts.
- Support level preventing the further price falls.
- If it breakdown the support level, may be price will fall down to next support level.
RESISTANCE LEVEL:
- The prices at which large number of sellers expected to enter the market.
- The price will cross the resistance level then it becomes support level.
- To find out this using chart patterns.
Example for support level and resistance levels
In above diagram,
S1, S2, S3 are support levels.
R1, R2, R3 are resistance levels.
Market is in down trend then all resistance levels are support levels.
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