1/ Understanding Support and Resistance: • Support levels indicate where there will be a surplus of buyers. • Resistance levels indicate where there will be a surplus of sellers.

• When the price moves up and then pulls back, the highest point reached before it pulled back is now resistance. • When the price continues up again, the lowest point reached before it started back is now support.

2/ What is a Support: • Support is the level at which demand is strong enough to absorb the supply. • The price is likely to bounce back and moves up in the opposite direction. • Support is a level where the demand from buyers is expected to be much higher than sellers.

3/ What is a Resistance: • It is the opposite of a support level. • It is a price point (ceiling) at which the stock price is not expected to rise any higher. • Resistance is a price point at which there are more sellers than buyers in the market for a particular stock.

4/ Can support become a resitance and vice-versa: • When the price passes through resistance, thereafter erstwhile resistance could potentially become support. • Similarly, when prices pass through the support, thereafter erstwhile support could become a resistance.

5/ What happens when a Support or Resistance is tested multiple times: • The more times S/R is tested, the weaker it becomes. • When a support or resistance level breaks, the strength of the follow-through move depends on how strongly the broken S/R had been holding.

6/ How to trade using support-resistance logics: • S/R logics can be used by bot breakout traders as well reversal traders.

7/ How to trade breakouts using S/R logics: • Buy when the price breaks up through resistance with recent swing low as the SL. • Sell when the price breaks down through support with recent swing high as the SL.

8/ How to trade reversals using S/R logics: • Buy when the price falls towards support. • Sell when the price rises toward resistance.

9/ Not exact numbers but always a zone: • One thing to remember is that support and resistance levels are not exact numbers, they are always a zone.

10/ Practice is the key: • You won't be able to define S/R in the live market unless you practice in the past charts. • To train your eyes, you need to practice this across different time frames, and then you bare eyes could finally spot them.

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