Support and resistance

Support and resistance are the most important day trading technical analysis elements. As they say, "If you gonna trade, you better find support and resistance" (or else the market will eat you alive!). Support is a price level at which a financial instrument is likely to stop falling, at least temporarily, and resistance is a level at which price is likely to stop rising. The best day trading support and resistance indicator is the , which highlights with uncanny accuracy, those 'zones' whithin which support and resistance are heaviest. Day trading support and resistance are not precise lines on the chart, but as we said, are 'zones' within which the action intensifies. Support and resistance are basically price bands where the price will probably stop falling or rising respectively. Because of their widespread use in all financial markets, day trading support and resistance are the best indicator for day trading. Many of the most successful day traders learn how to calculate and use support and resistance exclusively in trading. Support and resistance levels can be applied in any timeframe, although it works best in day trading scenarios. If you can identify the support and resistance levels on a chart while day trading , you can figure out where to jump in with the 'entire weight of the market behind you'.