Define Support
– When the price starts moving up again, the lowest point it reached before the said move is called Support level.
– This Support level is a psychological area where one can find a surplus of buyers. The demand is strong enough to prevent the price from declining further.
Define Resistance
– When the price starts moving down again, the highest point it reached before the said move is called Resistance level.
– This Resistance level is a psychological area where one can find a surplus of sellers. The supply is strong enough to prevent the price from advancing further.