OPEN-SOURCE SCRIPT
Combined: Strat Dashboard + FVG + M&E Stars
STRAT MIX + VECTOR + SUPPORT
In financial markets, support and resistance are fundamental concepts in technical analysis used to identify price levels where an asset's price tends to pause or reverse. They are essentially areas on a chart where buying or selling pressure is expected to be strong enough to temporarily halt or reverse the prevailing price trend.
Here's a breakdown:
* Support: This is a price level where an asset's downward movement is expected to stop due to increased buying interest. Think of it as a "floor" where demand is strong enough to prevent the price from falling further. When the price approaches a support level, buyers tend to step in, leading to a potential bounce or reversal upwards. The more times a price level has held as support in the past, the stronger it's generally considered.
* Resistance: This is a price level where an asset's upward movement is expected to stop due to increased selling interest. It acts like a "ceiling" where supply is strong enough to prevent the price from rising higher. When the price approaches a resistance level, sellers tend to step in, leading to a potential pullback or reversal downwards. Similar to support, the more times a price level has acted as resistance, the more significant it's often seen.
Key characteristics:
* Supply and Demand: Support and resistance levels are a reflection of the continuous interplay between supply (sellers) and demand (buyers) in the market.
* Dynamic Nature: These levels are not fixed lines but rather zones. They can also "flip roles"; if a resistance level is broken and the price moves above it, that former resistance can then become a new support level, and vice-versa.
* Psychological Importance: These levels often derive their strength from collective market psychology, as many traders and investors recognize and react to the same price points.
In financial markets, support and resistance are fundamental concepts in technical analysis used to identify price levels where an asset's price tends to pause or reverse. They are essentially areas on a chart where buying or selling pressure is expected to be strong enough to temporarily halt or reverse the prevailing price trend.
Here's a breakdown:
* Support: This is a price level where an asset's downward movement is expected to stop due to increased buying interest. Think of it as a "floor" where demand is strong enough to prevent the price from falling further. When the price approaches a support level, buyers tend to step in, leading to a potential bounce or reversal upwards. The more times a price level has held as support in the past, the stronger it's generally considered.
* Resistance: This is a price level where an asset's upward movement is expected to stop due to increased selling interest. It acts like a "ceiling" where supply is strong enough to prevent the price from rising higher. When the price approaches a resistance level, sellers tend to step in, leading to a potential pullback or reversal downwards. Similar to support, the more times a price level has acted as resistance, the more significant it's often seen.
Key characteristics:
* Supply and Demand: Support and resistance levels are a reflection of the continuous interplay between supply (sellers) and demand (buyers) in the market.
* Dynamic Nature: These levels are not fixed lines but rather zones. They can also "flip roles"; if a resistance level is broken and the price moves above it, that former resistance can then become a new support level, and vice-versa.
* Psychological Importance: These levels often derive their strength from collective market psychology, as many traders and investors recognize and react to the same price points.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.