Yatırımcı.AI

Support and resistance

Support is the price level where a falling price finds buyers and pauses; resistance is where a rising price meets sellers and struggles. Support and resistance levels are the building blocks of technical analysis.
Contents
  1. 1.Key points
  2. 2.Formula / calculation
  3. 3.Interpretation
  4. 4.Pitfalls
  5. 5.Frequently asked questions

Key points

  • Levels where the price has reversed several times stay in investors’ memory as buy or sell points and tend to produce reactions again.
  • A resistance break on volume is read as trend continuation, a support break as acceleration of the decline.
  • levels are zones rather than exact lines and false breakouts are common.

Formula / calculation

previous lows and highs, round numbers, 52-week high/low, moving averages and Fibonacci retracement levels (38.2%, 50%, 61.8%) serve as candidate levels. Yatırımcı.AI technical pages show the 52-week range and distance from the high and low.

Interpretation

A resistance break on volume is read as trend continuation, a support break as acceleration of the decline. Broken resistance usually becomes new support and broken support new resistance (role reversal).

Pitfalls

levels are zones rather than exact lines and false breakouts are common. Low-volume breaks are unreliable. Levels drawn on data not adjusted for bonus issues and dividends mislead.

Pages where this term appears

Related terms

Frequently asked questions

Support is the price level where a falling price finds buyers and pauses; resistance is where a rising price meets sellers and struggles.

previous lows and highs, round numbers, 52-week high/low, moving averages and Fibonacci retracement levels (38.2%, 50%, 61.8%) serve as candidate levels. Yatırımcı.AI technical pages show the 52-week range and distance from the high and low.

Yatırımcı.AI ResearchMethodology