What are Supports and Resistances?

Supports and resistances are two of the most important concepts in the technical analysis of stock markets. They refer to price levels at which the market either finds strong support or encounters strong resistance and in turn, are used to predict potential price movements. These two terms are so important in the stock market because they can provide investors with valuable insights on how to buy and sell stocks.
In this article, we will cover the definition of supports and resistances, as well as how to identify them and their benefits. We will also discuss common mistakes to avoid when identifying supports and resistances, and provide a summary of the article. The role of support and resistance levels is to help investors determine potential trading opportunities. These levels can provide investors with valuable insights on when to buy and sell stocks, and can help identify potential reversal points in the market. By understanding these levels, investors can gain an edge over their competition.
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