O'Reilly logo

Technical Analysis: Power Tools for Active Investors by Gerald Appel

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Support and Resistance Levels

Support Zones

An awareness of patterns associated with support zones (areas usually associated with previous trading ranges, in which prices find support against further decline) and resistance areas (areas that resist further price advance) enables investors to more accurately define the direction of significant market trends. Such patterns also suggest areas in which price reversals are likely to take place.

Stock market advances do not take place in a straight line. They generally take place in a steplike series of advance, flat or retracement period, further advance, another flat or retracement period, and so forth.

During bull markets, retracements tend to take place at increasingly higher levels. The series ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required