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 falls.

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!