Stock Market Technical Basics Support and Resistance

Support & Resistance of a stock  

Finding the entry or exit of a stock/future/index/other financial instruments.

Support Level  

It can be defined as the price level, where buying volume increases as compared to selling volume, however proper risk-management needs to be followed while creating a buying position at the support level, because if it breaks the support level, there may be a chance that price can go down and may cause heavy losses.

So as a result support level will become a resistance level, if the price breaks down support level.

Resistance Level 

It can be defined as the price level, where selling volume increases as compared to buying volume, however proper risk-management needs to be followed while creating a short-selling position at the resistance level, because if it breaks a resistance level, there may be a chance that price can go down and may cause heavy losses.

So as a result resistance level will become a support level, if the price breaks out resistance level.

Pivot, Resistance & Support Formulas

High, Low and Close value can be taken from hourly candle/daily candle/weekly candle, etc.

Thank You