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For traders, one concept that is hard to figure out is the concept of support and resistance.   This is perhaps so because support and resistance are invisible until they are encountered , and still without using multiple timeframes it can be hard to recognize what is actually happening . 

There’s a lot of effort that goes into making use of technical analysis training to find out in the market where support and resistance levels are.   Various tools are used , including moving averages, trend lines, candlesticks, and retracement levels .

There are some that don’t work and some that do, and more frustrating , some may not work all the time, but some of the time.   Figuring out when an indicator or tool will work is money worthy information.

Most efforts fall short because they attempt to use a single tool , and one timeframe is used in application, and try to apply it under all circumstances .   When various tools are used you get better results , optimized for a particular condition of the market , are employed in a well-thought-out and highly organized program that takes into consideration trends and congestion.  Technical analysis training shows that going further towards accurateness when applied to various timeframes at the same time will accrue and various results are considered .

You get the best results when you use a total theory of action on the market that can help the trader understand what the market is doing right now , why the market is doing that, what is probably going to happen in the near future , and provide traders with a projection of support and resistance levels that as the market goes forward can be monitored .

Sound tough ?  Maybe , but various systems of technical analysis have been able to accomplish this feat.

Let’s start with some definitions .

Something below price is support, and this force can push prices back up from where they fell when it is encountered . This is made up of market buyers that are there but waiting to take action until the price gets to a certain point , or of position holders that are short and forced to purchase if the market begins going against them .   This group of buyers that flock around a particular price that causes support to act like support .

Resistance is something above price , and this force pushes prices back down to where they were when it is encountered . It consists of sellers who are present in the market but waiting to take action until price reaches a certain level , or those long position holders that have to sell when the market doesn’t go their way . 

Both resistance and support can be easily identified with technical analysis that is conventional using something such as the 10 period moving average. Or a more involved system can be represented like you learn in technical analysis training such as Drummond Geometry .

A higher level of tool use is used in this method to create higher time period overlays of support and resistance areas to a daily chart, coming from the weekly and even the monthly charts. These more developed methods provide traders with more support when making decisions to buy or sell . When using this method you can project into the future areas of support or resistance, so as the market moves on the trader can be prepared .

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