Support – Resistance
Support and resistance
Support and resistance is the price that someone wants to buy (support) or want to sell (resistance) a lot.
By these It is the core of psychology and statistics already in our daily life. When it is a price that people feel acceptable and cheap, people will buy more products. Or when they feel that they are expensive, people will take it out and sell it to make a profit
The reason that the price moves up or down This is due to the difference between the purchase demand and the sales demand of the market minded If at any time the demand of the market people is greater than the demand for sales, it will result in a higher price. But if there is a demand for sales of people in the market that the demand for purchase, the share price will drop.
At the point where people feel and be accepted, people will buy more. Which when so Would inevitably send troops to buy more power Until forming a support line And when they feel that they are expensive, people will bring them out and sell them together Will occur as a resistance itself
But support and resistance are not 100% guaranteed that the price will reverse every time it reaches that price. Therefore, investors must use caution and study well. Because if the selling pressure on the support is greater than the buying force Prices will continue to decline and buying pressure where resistance is greater than selling pressure will rise anyway. When I don’t know where the future events will turn out The best thing to do is to know where the situation will go first. And then buy in the direction of the market whether buying or selling force can win No need to buy the best price. But getting a safer price would be better