Support and Resistance Working Hand in Hand
In technical analysis, it is inevitable to encounter the term support and resistance levels. But before that, what is technical analysis? In simple terms, technical analysis is a process which deals on determining the trend of future prices based on previous market data that can be easily displayed by technical analysis software. It is widely used in marketing. Now, support and resistance is a concept based on technical analysis.
Support and resistance determines the estimated level in which the price increase will stop and start decreasing. Distributing the concept into two would make it easier to fathom. The support level exists when there is a price decrease. It is the level in which the price is stable and stops decreasing for the time being. On the other hand, the resistance level is the other way around. This one exists when there is an increase in the price. Once the price settles and stops from further increasing, this is referred to as the resistance level.
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