If the price falls below a support level, that level will become resistance. If the price rises above a resistance level, it will often become support. As the price moves past a level of support or resistance, it is thought that supply and demand has shifted, causing the breached level to reverse its role.
What Is Price Action?
Price action is the movement of a security's price plotted over time. Price action forms the basis for all technical analyses of a stock, commodity or other asset charts.
Many short-term traders rely exclusively on price action and the formations and trends extrapolated from it to make trading decisions. Technical analysis as a practice is a...
The world of trading has changed drastically over the past few decades, with individual retail traders becoming more involved in predicting price movements and understanding market dynamics.
While two and three decades ago, central banks and financial institutions could manipulate the markets without any individual trader knowing they were doing so, today, they...
