Support and Resistance
Support and Resistance is an important part of Technical analysis. Let's discuss what is "Support" ? Support level is like a war where buyers wins against the sellers. Support is a level where there is strong demand. Simply at support levels, buyers are in large numbers as compared to sellers. The logic behind this is that as the price goes lower it becomes cheaper which attracts more buyers to initiate their positions. By the time when that price is at support level, demand will overcome supply which means buyers win the war against sellers. Let's take a look on recent Reliance industries chart: There are the times when the price does not hold the support levels because of reducing number of buyers and that level fails. As more sellers comes to play and win the war against buyers price breaks the support level and starts to decline.After support level break, they can become the new future resistance level. Let's understand with the example. Resistance Resistan...
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