What is a support & resistance indicator?

The price range (height) of support or resistance areas depends on the spread between price highs and lows that the level goes through. Resistance levels are marked in orange, and support levels are marked in blue. The Support&Resistance indicator does not repaint.

How do you identify support and resistance levels on a chart?

Support and resistance levels are identified on a chart by using various other technical indicators, such as the Fibonacci sequence, moving averages, trendlines, or support and resistance trading zones. Does support and resistance actually work?

How can support and resistance inform trading?

As with any indicator, there are many different ways to use support and resistance, but we’ll stick with the three basic ways support and resistance can inform trading. The first way to use support and resistance is to enter into a position when you think a reversal will occur.

What is the difference between support and resistance?

Support and Resistance is one of the most important and fundamental parts of technical analysis: Support: Typically expected that prices should rise after touching support. Resistance: Generally expected that prices should fall after hitting resistance. This Semiconductor HOLDRS (SMH) chart shows price respecting support and resistance lines.