Support and Resistance

In the emerging world of trading, support, and resistance levels are the unseen lines that shape market movements. These levels work as psychological barriers and influence the decision-making of a trader. Whenever a price approaches a support level, it usually finds buying interest, while resistance levels can trigger selling pressure. Identifying these levels is important for making informed trading decisions. Here we will discuss the concept of support and resistance along with trading strategies using support and resistance. Before getting into more details let's first understand support levels and resistance level in detail. Support levels are price points where a security’s price is expected to find buying interest. When a security price approaches a support level then it may encounter a rush in demand. There are several factors that can contribute to the formation of support levels such as psychological levels, trend lines and previous low prices. When it comes to resistance level, the price points where the security’s price is likely to encounter selling pressure. When the security’s price approaches a resistance level, it may face increased selling and prevent the future price increases. There are several factors that can contribute to the formation of resistance levels such as downtrend lines, high previous security prices and downtrend lines. Here we will suggest you follow some of the trading strategies using support and resistance like buy at support. To understand the trend, follow the breakouts. Usually, a breakout occurs when the security price breaks above the resistance level or below support level. Sometimes, a false breakout also happens when a security price breaks through a support or resistance level but then reverses direction. Picking good stocks using support and resistance levels is a difficult task but FindScan can make it easy. This is a useful screener which comes with a simple interface and advanced features. It allows users to put all required attributes according to their investment needs and this screener provides the best-screened stocks list for them. Try FindScan today and add some of the potential stocks to your portfolio.