Trends, Support & Resistance Flashcards
rIs a general direction of prices on a particular time.
Trend
3 types of trends
- Uptrend
- Downtrend
- Sideways
Describes the price movement of a financial asset when the overall direction is upward
Uptrend
Is a gradual reduction in the price or value of a stock or commodity, or the activity of a financial market.
Downtrend
Can be contrasted with an uptrend
Downtrend
Sideways trend is known as
Sideways market / Sideways Drift
Occurs when the price of a security trades within a fairly stable range without forming any distinct trends over some period of time.
Sideways Trend
What is the Trend on basis of time
- Major (long-term)
- Intermediate
- Minor (short-term)
Supply is ________ Demand is downtrend
Are key concepts in technical analysis used to identify price levels where a stock is likely to stop and reverse direction
Support and Resistance
A price level where a stock tends to stop falling and reverse upward
Support
Indicates a concentration of buying interest
Support
If the price breaks below ________, it signals potential further decline.
Support
Indicates a concentration of selling interest
Resistance
A price level where a stock tends to stop rising and reverse downward
Resistance
If the price breaks above _________, it signals potential further increase.
Resistance
Types of Support & Resistance
- Horizontal Levels
- Trendlines
- Moving Averages
- Psychological Levels
Static price levels identified from past highs/lows.
Horizontal Levels
Diagonal levels that align with an uptrend or downtrend.
Trendlines
Dynamic support/resistance that changes with price movements.
Moving Averages
Round numbers (e.g., $50, $100) that attract buying/selling pressure.
Psychological Levels
