Understanding resistance and support levels in trading is fundamental. Here are a few practical judgment methods, all summarized from hands-on experience, without beating around the bush:

Conversion of previous highs and lows

When the price is rising, previous highs will block the stock price, acting as resistance; when it is falling, previous lows can support the stock price, acting as support. However, if the price truly breaks through a previous high, that high will turn into support later; if it breaks below a previous low, that original low will become resistance. Simply put, "breakthrough becomes support, breakdown becomes resistance."

The role of dense chip areas

In a volatile market, the price range where the trading volume is high and chips are concentrated is crucial. If the stock price is above this range, it acts like a cushion, serving as support; if it falls below, it’s like having a lid on top, becoming resistance.

The changing role of trend lines

Connecting two low points creates a support line, which can help support the stock price while it is above it; but if it breaks below, this line will press down on the stock price, becoming a resistance line. Similarly, connecting two high points creates a resistance line, which will turn into a support line if broken, somewhat like the concept of "offensive and defensive conversion."

The reference significance of moving averages

Moving averages act like a "reference line" for stock prices: when the stock price is above the moving average, it supports the stock price; when it falls below the moving average, it presses down on the stock price, becoming resistance.

The impact of large bullish and bearish candles

A large bullish candle with increased volume often has its bottom supporting the stock price, acting as support; however, if it breaks below, this position will become resistance. Conversely, a large bearish candle with increased volume will have its top become a resistance level, but if the stock price later rises back above this level, the resistance will turn into support.

Final reminder: These supports and resistances are not absolute; always consider the trading volume. If there is a significant breakthrough or breakdown, the original support/resistance level may lose its effectiveness. During trading, avoid rote memorization; it’s more reliable to make flexible judgments based on market sentiment and capital flow.