Sunday, August 13th, 2017

5. Day Trading Lesson 5: Support and Resistance


www.informedtrades.com The fifth lesson in a series on technical analysis for active traders of the forex, futures, and stock markets. Just as anything where market forces are at play, the price of a financial instrument in the stock, futures or forex markets is ultimately determined by supply and demand. Very simply, if demand is increasing in relation to supply then price will rise, and if demand is decreasing in relation to supply then price will fall. As we have learned in previous lessons, what you are basically looking at when you see an uptrend on a chart is an extended period of time where demand has continued to increase in relation to supply. Similarly when looking at a downtrend you are seeing an extended period of time where demand has decreased in relation to supply for an extended period of time, causing price to fall. Similarly, in a downtrend, demand is continuously falling in relation to supply which causes the price of an instrument in the stock, futures or forex market to fall. In this lesson we are going to look at something known as support and resistance which are price levels where the supply demand equation is expected to change, and price is then expected to stop moving in the direction it was moving previously, or reverse direction.

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Comments

10 Responses to “5. Day Trading Lesson 5: Support and Resistance”
  1. coltrain210 says:

    Thanks.

  2. InformedTrades says:

    my pleasure thank you for the comment. Best Regards, Dave

  3. meta2040 says:

    thanks again

  4. jaguar265 says:

    I’m new to trading. Is there a lesson on how to draw trend lines?

  5. InformedTrades says:

    Hello Jaguar 265, cheers to Me that you have. What I recomendar

  6. iecoclarin says:

    Hello, sorry to bother you with something out of nothing, but I am trying to record videos of myself on my PC navigation with my voice on them, and publish then on YouTube. I have a software called Jing but works with SWF files and YouTube do not agree, do you know how I can burn a FLV file from my computer navigation? Thank you very much for any help you can give me with this

  7. jaguar265 says:

    Thank you Dave for your response. I will check it out.

  8. jamrocx says:

    this sounds as of sobrepurchase and sobresale for mÃ.

  9. waterpig916 says:

    This is a great event, will inform my colleagues of your website.

  10. InformedTrades says:

    Waterpig916 Hi, glad you like them and thanks for helping spread the word! Best Regards, Dave

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