Support and Resistance Purist.
Technical traders do not believe that stock market movements are random. Technicians believe that prices don’t really fluctuate haphazardly because there is a sort of tug-of-war, as it were, between sellers and buyers, which keeps the price within a certain range. The lower and upper limits of this range are called support and resistance, respectively.
This is one of the most important concepts to master in technical trading.You'll often hear technical analysts talk about the ongoing battle between the bulls and the bears, or the struggle between buyers and sellers . This is revealed by a pattern in which a security seldom moves above a certain point (resistance) or below a certain point (support).
support is the price level through which a stock or market seldom falls . Resistance, on the other hand, is the price level that a stock or market seldom surpasses .
Why does this happen?
These support and resistance levels are seen as important in terms of market psychology and supply and demand.
Support and resistance levels are the levels at which a lot of traders are willing to buy the stock (in the case of a support) or sell it (in the case of resistance). When these trendlines are broken, the supply and demand and the psychology behind the stock's movements is thought to have shifted, in which case new levels of support and resistance will likely be established.
Use of support and resistance zones can be a key to successful trades.
