Inside Trade | Intro to Resistance and Support

An observation done to the platform may lead to several conclusions. One of which is that the prices is going up and  down from time to time. It often fluctuates on a certain direction, either upward or downward, and on a certain extent.

The price fluctuation is caused by numerous factors and explaining the movement in details will be a very rigorous work.  But what we can do is determine  the size of the movement, the “extent” that was mentioned earlier. Resistance and Support levels determine these values.

Resistance is the value in which the price may go on an upward movement. On the other hand, Support is the value in which the price may go on a downward movement. A capable estimation of these levels gives a really huge advantage to traders. It points out the value of their potential profit and their danger zones.

Please take note that these values changes from time to time and are denoted on certain degrees. There are major and minor resistance and support levels are retested and determined repeatedly.