Tuesday, December 9, 2014

Crudeoil positional analysis 09.12.14 Update II

Support & Resistance Lines

Fundamentally to be able to trade you need to be capable of describing what the price activity is doing on a chart. When you look at the chart, you are in the process of identifying and describing where the price is and what it is doing. A common and basic tool is resistance and support lines. The resistance and support lines prove where the emotions of the market are clustered.


Support is where the price stops falling and comes to a temporary rest. We call this area support. The price has for the time being stopped falling and is now resting on the floor so to speak.


Resistance is where the price stops rising and takes a break. The movement has at least temporarily hit a ceiling you can say.