Module 2   Technical Analysis (Video Series)Chapter 9

Support and Resistance

View chapters →

9.1 – Support and Resistance

The best way to identify the target price is to identify the support and resistance points. The support and resistance (S&R) are specific price points on a chart expected to attract the maximum amount of either buying or selling. The support price is when one can expect more buyers than sellers. Likewise, the resistance price is expected more sellers than buyers. More information is in this video.

Let’s move on to the following video, where we will learn about Technical Indicators.

We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.


Key takeaways from this chapter

  1. S&R are price points on the chart.
  2. Support is a price point below the current market price that indicates buying interest.
  3. Resistance is a price point above the current market price, indicating selling interest.
  4. To identify S&R, place a horizontal line to connect at least three price action zones, well-spaced in time. The more price action zones (well spaced in time) the horizontal line associates, the stronger is S&R. 
  5. S&R can be used to identify targets for the trade. For a long trade, look for the immediate resistance level as the target. For a short trade, look for the immediate support level as the target.
  6. Lastly, comply with the checklist for optimal trading results.

15 comments

  1. Dr.Pradeep says:

    Want varsity in marathi language.also want best stock market books for indian investors which are beginners in marathi.plz reply

    • Karthik Rangappa says:

      Not sure about Marathi, Dr.Pradeep, will be very tough to get his translated. But will keep this in mind.

  2. Jaisankar says:

    Nifty and bank nifty option

  3. Narendra says:

    I am using Zerodha to trade stocks. I am unable to find support & resistance levels in the charts. How to ensure that i can see them. Please advice.

  4. harsh says:

    THE VIDEOS ARE NOT IN A FRIENDLY LANGUAGE WHERE A BEGINNER CAN LEARN SOMETHING TOO MUCH OF TECHNICAL LANGUAGE WHICH IS DIFFICULT FOR A BEGINNER TO COPE WITH UP

  5. Dr.Sujit says:

    thanks. its really useful

  6. Jagannath says:

    Very useful from Versity for beginners.. Ur videos made me to enter stock market and one thing can u guide us what is the best book for beginners??

    • Karthik Rangappa says:

      Happy to note that, Jagannath. I’d suggest you read through the content on Varsity web 🙂

  7. Dilshad says:

    Excellent

  8. BHOSALE says:

    I AM LEARNING ABOUT TECHNICAL ANYLYSIS AND MARKET FROM 10 MONTHS…STILL MAKING LOSSES AFTER LEARNING FROM VARSITY …ANYONE CAN PLZZ SUGGEST ME WHICH COURSES SHOULD I PREFER TO LEARN MORE IN DEEP AND THE WAY FOR PROFFESSIONAL TRADER

    • Karthik Rangappa says:

      A different course will not help. Please analyze where you are going wrong. Are you position sizing properly? Managing risk properly? Figure out where you are messing up.

  9. Prashant Chaudhary says:

    I’m not here to point-out what minor mistake(s) they’ve made. I’m here to find what my blind spots are, what can I learn from these valuable contents.
    Thanks Karthik and Zerodha team to take the pain for us.

Post a comment