Friday, June 15, 2007

How to define Support & Resistance on Stock for New Traders - Novice

PART 1

Have you ever seen a zig-zag chart before ? The price of a stock in KLSE market works in similar fashion in between the support and resistance.

SUPPORT - is where the buying at a price lever is strong enough to cause a reverse in a downtrend.
RESISTANCE - is where the selling at a price lever is strong enough to cause a reserve of an uptrend.

Most of the traders look for support levels when they wish to buy and they similarly look for resistance lever when they wish to sell.

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