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Smart Education Technical Analysis Support and Resistance

 Support and Resistance have a huge importance in the study of Technical Analysis, through  which we can decide in advance for our buy or sell position in any on going trend i.e Up Trend or Down Trend, In addition, with the help of "Support and Resistance" we can predict probable price reversal of the respective stock, commodity or any currency 

 What is Support ?
 In Technical Analysis support means the price level where falling stock does not fall below and get buyer support with respect to its historical data In other words with very simple language,support means a price level where falling stock does not fall below or unable to
fall below from that price, the stock get buyer support and price will going to trade in upward
direction This support may be with respect to stocks's past support level In the study of "Support and Resistance" its also very important to have some knowledge of Trading Psychology and Buyer and Seller sentiment which we discuss in this series later
It will be more clear with the help of picture where stock get support from its precious support
level or it get support from its support trend line As we discussed earlier that Technical Analysis is a study of forecasting future price / trend of any stock, commodity or currency with respect to its past data. Now same as Support

 What is Resistance ?
In Technical Analysis resistance means the price level where raising stock does not raise further and get selling pressure with respect to its historical data In other words with very simple language,resistance means a price level where raising stock does not raise further or not able to raise further from that price,the stock get selling pressure and price will going to fall in down ward direction,this is due to its past resistance level at some price point or it does not able to break it resistance trend line and then fall back from that price

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