Master Support and Resistance Levels:
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
The Foundations of Technical Charting
Technical analysis is based on the idea that historical price patterns repeat. Support and resistance levels are the most fundamental structures in technical analysis, helping traders time trade executions.
What are support and resistance zones in stock charts?
Support is the price level where buying interest is strong enough to overcome selling pressure, stopping a stock from falling further. Resistance is the price level where selling interest is strong enough to stop the stock from rising further.
Practical Rules for Trading Levels
- Multiple Touches: The more times a price tests a support or resistance level and bounces, the stronger that level becomes.
- Role Reversal: Once a resistance level is broken, it frequently turns into a support zone during pullbacks, and vice versa.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
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