In a period when prices are continuously increasing, the resistance level is determined by the prices where they stopped. In this point, the sellers are stronger because the price level reached the maximum trend limits. At the point of support at the point of resistance as it is the volume of transactions is large. How wide and how long is the processing time if the volume of transactions, the level of resistance will be so strong.
When the market reach to level of resistance;
• Sellers are stronger than buyers.
• Usually the sales operations are performed.
• The ceiling price is accepted by the level of stubbornness at this point where investors most likely to take a decision to wait for the price drop will cause faulty investment.
In determining resistance and support levels, technical analysis during the use of a candle and bar graphs will be useful in terms of getting the right results. As you see, the concept of price resistance level is determined by the market trend direction. The expert traders determine the support – resistance levels for themselves and the values may be different from each other. Because, the time or trend may vary by person to person. Finally, we can say if the price surplus the resistance level, it will be named as support level in the new scenario.
- Date: 21 October 2016 Fri 15:32
- Last Added
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