5
HOW TO IDENTIFY SUPPORT AND RESISTANCE ZONES
Questions
Subjects to Be Covered
Support and resistance defined
Determining likely support and resistance points
Establishing the significance of potential support/resistance areas
1. True or false: Support is a concentration of supply sufficient to halt a rally temporarily.
A. True
B. False
2. True or false: The price is likely to find resistance at the black line in the following chart if it falls any further.
A. True
B. False
3. Name technical characteristics described in the text that could result in a support or resistance point.
i. Round numbers
ii. Emotional points
iii. Significant trendlines ...
Get Study Guide for Technical Analysis Explained Fifth Edition, 5th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
