#纳斯达克加密ETF扩容

Stock Price Behavior Analysis Course

Lesson 10: Basic Concepts and Drawings of Support and Resistance

Support and resistance are one of the cores of price behavior analysis. They act like the market's "floor" and "ceiling," influencing price rebounds or declines.

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1. What are Support and Resistance?

• Support:

When the price drops to a certain area, a large buying interest emerges, making it difficult for the price to fall further. This point is called support.

→ Similar to a "floor," the price rebounds after hitting the ground.

• Resistance:

When the price rises to a certain area, selling pressure increases, making it hard for the price to continue rising. This point is called resistance.

→ Similar to a "ceiling," the price falls back after reaching the top.

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2. Basic Methods of Drawing Support and Resistance

1. Observe turning points:

Look for positions where the price has rebounded or declined multiple times in the past; these areas are most likely to be support or resistance.

2. Use closing prices or shadows range:

If the price fluctuates significantly, you can draw a "price range" instead of a single line, which is more realistic.

3. Conversion Principle:

Once support is broken, that area often becomes future resistance. The opposite is also true, known as the conversion of support and resistance.

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These positions not only help you determine entry or stop-loss points but can also be combined with candlestick patterns and trends for multiple confirmations.