Support and Resistance Indices Technical Analysis & Support and Resistance Trading Signals

Support & Resistance is one of the widely used concepts in indices trading. Most traders draw horizontal lines to show these areas.

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 indices price can either bounce off these zones or break through these zones.

If a resistance level is broken stock indices price will move higher and the resistance level will turn to a support.

If a support level is broken stock indices price will move lower and this level will turn to a resistance.

Indices Price where the majority of investors believe that prices will move higher, while resistance levels indicate the stock indices price at which a majority of investors feel indices trading prices will move lower.

Once stock indices price has broken through a support or a resistance then it is likely that the stock indices trading price will continue to move in that specific direction until such a time when it gets to the next support or resistance area.

The more often a support or resistance level is tested or is touched by the stock indices price and bounces, the more major that particular level becomes.

Stock Indices Technical Analysis & Generating Trading Signals

These levels are calculated a indices trend lines method.

Upward Stock Indices Trading Trend

In an upwards indices trend the resistance & support will generally head upward

Upwards Indices Trading Trend

Downwards Stock Indices Trading Trend

In a downward indices trend the resistance & support will generally head downwards

Downwards Indices Trading Trend