Support and Resistance
in Day Trading
Support and resistance
are by far the most important day trading technical analysis elements
you will ever find, and the best day trading option if you want
to be on the rigt side of the market. Support is a price level at
which a stock or other security stops falling (at least temporarily)
hence the name. Resistance is a level at which price stops rising,
at least temporarily.
The best day trading
support and resistance indicator without any doubt at all is the SureFireThing Camarilla Equation, which highlights with uncanny accuracy, those
'areas' within which support and resistance action are heaviest.
This, of course, makes the SureFireThing Camarilla Equation the best tool bar
none for day trading online. Day trading support and resistance
are never exact lines on a chart, but are instead 'zones' within
which the action intensifies, as players of various persuasions
'battle it out' for control of the direction a stock is moving.
It all comes down to supply and demand - if there is more demand
than supply, resistance will crumble and price will rise; likewise
if there is more supply than demand, support caves in and price
Because of their widespread
use in virtually all the world's financial markets, day trading
online with support and resistance is the best way to practise day
trading. Many of the world's most successful day traders learn how
to calculate and use support and resistance exclusively in trading,
paying no attention to company reports, volume, MACD or any other
indicator. Support and resistance levels can be applied in any timeframe,
although it works best in day trading scenarios with the SureFireThing Camarilla Equation. If you can learn to identify the support and resistance
levels on your charts while day trading, the chances are you can
figure out where to jump in with the 'entire weight of the market
behind you', and THAT, of course, is how you make money!