2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat

3. Bitcoin S&P Pattern - Nadeem_Walayat

4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat

4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison

5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat

7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat

8.The Bond Trade and Interest Rates - Nadeem_Walayat

9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride

10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills

Last 7 days

Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24

Gold Price To Re-Test $2,700 - 21st Nov 24

Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24

Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24

Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24

Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24

Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24

Is Forex Worth It? - 8th Nov 24

Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24

Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24

Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24

Gold Stocks’ Winter Rally 2024 - 3rd Nov 24

Why Countdown to U.S. Recession is Underway - 3rd Nov 24

Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24

President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24

Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24

The Future of Online Casinos - 28th Oct 24

Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24

Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24

UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24

7 Days of Crypto Opportunities Starts NOW - 27th Oct 24

The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24

This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

Subscribe Now

Trading Markets - 3 Ways to Identify Support and Resistance - 5 Chart Examples

InvestorEducation / Learn to Trade Jan 08, 2015 - 11:19 AM GMT

By: EWI

Today's lesson considers three ways to identify price support and resistance in the markets you trade.

Previous highs and lows
Trendline support
Fibonacci Ratios

These examples are adapted from Jeffrey Kennedy's Trader's Classroom service.

1) Uptrends terminate at resistance while downtrends terminate at support. Previous highs and lows often act as resistance and support.

In ALCOA Inc (AA), the September 2012 selloff found support near the previous July 2012 low.

The February 2013 peak occurred following a test of resistance at the January peak at $9.33.

2) Trendlines offer resistance and support for prices.

The 2008 advance in Gold found support numerous times near the trendline that connected the lows of the move, as you can see below:

Conversely, the trendline connecting the highs of Wheat's 2012-2013 decline provided resistance for countertrend price action.

3) Fibonacci ratios also identify resistance and support. As Elliotticians, we often look at retracements, the most common being .382, .500 and .618. In Akamai Tech, Fibonacci support ignited the July and November 2012 rallies:

In the same chart you can also notice how Fibonacci resistance in AKAM halted the July 2012 and February advances.

For more free trading lessons on trendlines, download Jeffrey Kennedy's free 14-page eBook, Trading the Line -- 5 Ways You Can Use Trendlines to Improve Your Trading Decisions. It explains the power of simple trendlines, how to draw them, and how to determine when the trend has actually changed. Download your free eBook.

About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world's largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.