Support and Resistance Stock Indices Technical Analysis and Support and Resistance Stock Indices Signals
Support and Resistance is one of the widely used concepts in stock index trading. Most traders draw horizontal lines to show these levels.
There is also an indicator used to draw these levels automatically and indicate the resistance and support levels.
When it comes to these levels stock index price can either bounce off these levels or break these levels.
If a resistance level is broken stock index price will move higher and the resistance level will turn to a support.
If a support level is broken stock index price will move lower and the this level will turn to a resistance.
Indices Price where the majority of investors believe that stock indices prices will move higher, while resistance levels indicate the stock index price at which a majority of investors feel stock indices prices will move lower.
Once stock index price has broken through a support or a resistance then it is likely that the stock index price will continue moving in that particular direction until it gets to the next support or resistance level.
The more often a support or resistance level is tested or is touched by the stock index price and bounces, the more major that particular level becomes.
Stock Indices Technical Analysis and Generating Stock Indices Signals
These levels are calculated a stock indices trend lines method.
In an upward stock indices trend the resistance and support will generally head upwards
In a downward stock indices trend the resistance and support will generally head downwards