5 Things You Need To Know When Reading Charts

It can be utterly baffling for many new traders looking at a price chart for the first time, resembling some sort of archaic video game, but given the proper tools and with enough time spent learning them, new traders can quickly develop a neat process for accessing their charts and scouting potential opportunities using some nifty technical know-how…

Support & Resistance Levels

Support and resistance levels form part of the cornerstone of technical analysis. The basic idea with support and resistance is that we are looking to identify areas where price is likely to stall and possibly bounce (support levels) and areas where price is likely to stall and fall back from (resistance levels). Necessarily, support levels are identified as levels below current market price and resistance levels are levels sitting above current market price.

Video: Support & Resistance Levels

Support and resistance levels form part of the cornerstone of technical analysis. The basic idea with support and resistance is that we are looking to identify areas where price is likely to stall and possibly bounce (support levels) and areas where price is likely to stall and fall back from (resistance levels). Necessarily, support levels are identified as levels below current market price and resistance levels are levels sitting above current market price.

In this video we explore what creates support & resistance levels and demonstrate just how to identify them and why they are so important.