Finding Support And Resistance Levels: Complete Guide

In the world of trading, support and resistance levels act as the market’s natural floor that can indicate where prices may tend to pause or reverse. Learning how to find support and resistance levels starts by studying past price behaviors, noting areas where prices have historically been bounced from, and by using tools like trend lines, horizonal support/resistance lines, or Fibonacci levels.

Recognizing these levels is important because they offer traders clues about potential future price movements, helping them make better decisions and manage risks effectively.

How To Find Support and Resistance Levels

This post originally appeared at NetPicks.

Category: Options Trading Basics