Invest in Stocks

Support and resistance are two important concepts in technical analysis that can help traders make profitable trading decisions. Support is a price level at which a security or an asset tends to stop falling, while resistance is a price level at which a security or an asset tends to stop rising. Here are some ways to use support and resistance to make profits: Identify key levels: Look for key levels of support and resistance on the chart. These levels can be identified by looking for areas where the price has bounced off multiple times in the past. These levels can act as strong barriers that the price may struggle to break through, making them good areas to enter trades. Use stop-loss orders: Once you have identified your support and resistance levels, set your stop-loss orders accordingly. A stop-loss order is an order placed with your broker to sell a security when it reaches a certain price. By setting a stop-loss order just below the support level or just above the resistance lev