How to use best Support and resistance strategy

INTRODUCTION

Support and resistance strategy is a major trading strategy in stock market. This strategy is useful for traders especially for long term investment.

In this strategy, the share values are supported at a stable level, at which the share values depreciate. And against it is the resistance level, which increases by considering the share values and reacting to its growth.

In this strategy, if traders make decisions based on support and resistance levels, they can easily make trading decisions in the direction of share values. This strategy teaches the operation of the stock market and is suitable for the long term.

Support:

Support and resistance strategy

•  Changes: Depending on the state of the market, support levels may be temporary. Traders must therefore take greater care while testing their positions.

• Expectation of climb: Traders should anticipate a rise once stock values have addressed the support leve. They frequently say this in their remarks.

• Priority: Traders ought to give this level top priority when making judgments based on support levels. Based on their choices, this is carried out.

• Research: Traders should test different market situations before making decisions based on support levels. They use data from recent market trends, share value movements, and other updates in this analysis.

• Position Testing: After the market reaches a support level, traders should test out several positions. Addressing these values enables traders to create

Resistance:

Support and resistance strategy

• Changes: Depending on the state of the market, resistance levels can be temporary. Traders must therefore take greater care while testing their positions.
• Should Sell: Traders are advised to sell after stock prices have approached the resistance level. Expectations are frequently high after this.
• Difficult Statement: When the share price reaches the resistance level, the statement is somewhat difficult and traders like to be very aware.
• Resistance Signals: If traders make decisions based on resistance levels, they are resistant to the downside of share values.
• Revised Plan: To make decision based on resistance level, traders should use their tr

Use of strategy

1. Stable Level: A support level is a point at which share values stop falling. When the value of a stock falls too low, traders are expected to buy the stock instead. In this situation it is important to check the addresses of the share values because in that situation people can over buy the shares.
2. Expectations of growth: Expectations of share values are higher at support levels. If the value of the stock reaches a support level, people are more likely to buy the stock at that point because the value of the stock is more likely to rise at that level.
3. Priority: The share is given priority if its value joins the support threshold. Because they expect to buy more in that position, traders usually purchase in this situation.
4. Research: While making decisions based on support levels, traders have to test various market conditions. They include testing of market signals, trends, updated market trends and other important conditions.
5. Position Testing: After reaching a support level, traders have to test various market positions. By checking the addresses of share values, traders make safer decisions.