Retail investors want to catch the bottom and chase the highs, but if they can't even figure out support and resistance levels, how can they make money?
Want to pinpoint buying and selling points? First, learn these basic judgment methods:
🔸 Historical Price Fluctuations
Looking back at the chart, where does the price often bounce back when it fails to drop? That’s support!
Where does it get pushed down when it tries to rise? That’s resistance!
The market always “repeats history,” and these levels are set by the big players.
🔸 Moving Average Indicators
For example, the 50-day and 100-day moving averages; it’s okay if you don’t understand them, just keep an eye on them!
During a downtrend, if the price approaches the moving average but doesn’t break it, that’s support!
During an uptrend, if the price touches the moving average and then falls back? Here comes resistance!
🔸 Volume Changes
When there’s an increase in volume near support, it indicates that many are buying, and someone is taking the position;
When there’s a decrease in volume at resistance, it means no one wants to buy anymore, and the market falls back.
Don’t underestimate this change; the combination of volume and price is the most reliable signal!
🔸 Psychological Round Numbers
Market is very sensitive to “round numbers” like 100, 1000, 50000!
Many people focus on these points for trading, so they naturally become psychological support or resistance zones!
Stop guessing price movements! If you want to catch the bottom or take profits, first understand support and resistance; this is your trading baseline!
Blindly chasing highs and cutting losses = Being at the mercy of others
Understanding positions + Operating with rhythm = Snatching profits ahead of the big players!
Those who understand have already set up positions in advance at these levels; those who don’t can only be led by the nose by the big players!
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