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Specializing in providing professional commodity and futures traders with daily support and resistance numbers; Based on extensive empirical studies on topics including the Golden Ratio (Fibonacci Sequence), Gann lines, Moving Averages, Standard Deviations, MACD’s, Stochastics.
Support and resistance levels are an important day trading technical analysis elements. Support is a price level at which a market stops falling (at least temporarily) hence the name. Resistance is a level at which price stops rising, at least temporarily.
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 market 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.
Many day traders use support and resistance exclusively in trading. Support and resistance levels can be applied in any timeframe. 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”.