Support and Resistance

Support and Resistance Lines form in Stock Charts frequently.

Support and Resistance Lines happen at Key Prices. Key Prices tend to be Horizontal Price Lines.

Some characteristics of Support and Resistance Lines:

• People tend to trade around certain Key Prices.

• Investors see these Key Prices as boundaries.

• These Key Prices are usually round numbers. 

• Horizontal Support and Resistance Lines have more Significance

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