Simple explanation about trend, support and resistance.
A trend can move in two directions. An uptrend defined by higher lows and higher highs, or a downtrend defined by lower highs and lower lows.
Then there is the sideways phase. As the name suggests, there is no trend here.
The trend line will be pulled upwards along the significant lows during an uptrend and pulled up the significant highs during the uptrend.
Common mistakes with a candlestick chart (candles chart) which I could observe here: The lines are partially pulled along the candle bodies and that is FALSE. If there is a shadow, then the line is drawn on the shadow and not on the body!!!
Resistance: When a price moves from the bottom to the top and pull back on the same point (price) over and over again.
Support: When a short moves from the top to the bottom and pull back on the same point (price) over and over again.
A trend can move in two directions. An uptrend defined by higher lows and higher highs, or a downtrend defined by lower highs and lower lows.
Then there is the sideways phase. As the name suggests, there is no trend here.
The trend line will be pulled upwards along the significant lows during an uptrend and pulled up the significant highs during the uptrend.
Common mistakes with a candlestick chart (candles chart) which I could observe here: The lines are partially pulled along the candle bodies and that is FALSE. If there is a shadow, then the line is drawn on the shadow and not on the body!!!
Resistance: When a price moves from the bottom to the top and pull back on the same point (price) over and over again.
Support: When a short moves from the top to the bottom and pull back on the same point (price) over and over again.