📚Trader’s glossary: support and resistance levels
Support and resistance are the next major concept after understanding the concept of a trend.
▫️These levels are the ones where the most trading occurs. Support is a level where demand is strong enough to prevent the price from falling further, while resistance is a level where supply is high enough to prevent prices from rising higher.
▫️Support and resistance levels are psychologically-important levels where a lot of buyers and/or sellers are willing to trade the stock. When the trendlines are broken, the market psychology shifts and new levels of support and resistance are established.