top of page
destek ve direnç.jpeg

SUPPORT-RESISTANCE

Support can be said to be the place where the market resists the falling prices, where the decline now slows or stops. The resistance is where the uptrend stops, where the rising prices can no longer rise further.

The support and resistance indicates the important psychological levels of the investment instrument traded.

The future of buying pressure as the support level approaches. It is assumed that selling pressure will come as the resistance level is approached. The more a support or resistance is tested in previous periods, the more reliable it is considered, of course, there is no rule that a reliable strong level cannot be broken. Levels formed with volume are considered to be stronger. Since the volume shows the measure of the traders participating in the market in a sense, it reflects the collective worlds of perception of the people trading on the relevant instrument. The last levels always seem stronger than the previous levels.

The price represents the value that the current asset gives to itself by the market at that moment in the market. If there is trading in the market, it means there is movement in the price. If the decline has begun, the market's value to that asset is relatively low. The decline slows down if the value perceived by the market for the asset is no longer the same as before and starts to rise again with the demand coming according to the expectation. The same structure is valid for resistance.

Support and resistance levels form the basis of trading strategies.
Trend lines are drawn using support-resistance points.



Ali Erkan TANACIOĞLU

AUTHOR:

“Investment information, comments and recommendations contained herein are not within the scope of investment consultancy.

Investment consultancy service; It is offered within the framework of an investment consultancy agreement to be signed between brokerage houses, portfolio management companies, banks that do not accept deposits and the customer.

The ratings contained herein are based on comments and personal opinions. These views may not be suitable for your financial situation and risk and return preferences.

Therefore, making an investment decision based solely on the information contained herein may not produce results in line with your expectations. "

bottom of page