Trade Stock Indices

Support & Resistance Technical Analysis and Support & Resistance Trade Signals

Support and Resistance is one of the vastly used concepts in indices trading. Most traders draw the horizontal lines to show these areas.

Additionally, an indicator exists that automatically plots these levels, highlighting the support and resistance regions.

Support & Resistance Indicator - Support & Resistance Levels Indicator Analysis

At these precise levels, the stock price possesses the capacity to either rebound from them or decisively pierce through these structural zones.

If a resistance area is breached, the price generally rises, with the previous resistance level becoming a new support level.

When a support level is breached, the price will decline, and this level will convert into a resistance level.

The price where many traders think prices will go up, while resistance levels show the price where most investors think prices will go down.

If a stock's price surpasses a support or resistance level, it is probable the stock's trading price will proceed in that particular direction until it reaches the subsequent support or resistance area.

The more times a support or resistance level is tested or touched by the stock price & bounces, the stronger that specific level is.

Technical Analysis and Generating Signals

A trend-lines approach is used to determine these values.

Upwards Trading Trend

In an upward trend the resistance & support will in general head upwards

Resistance & Support Indicator Upwards Trend - Support & Resistance Levels Indicator Analysis

Up-wards Indices Trade Trend

Downward Trend

In a downtrend, support and resistance levels tend to slope downward.

Support Resistance Trading Indicator Upwards Trend - Support Resistance Levels Indicator Analysis

Downward Trading Trend

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