What is the support line? What is the resistance line?

When the market share price reaches a certain level, it often does not continue to rise or fall. It seems that there is a line of resistance that blocks or supports the stock price. We call it the resistance line and the support line respectively.
The so-called resistance line refers to the fact that when the stock price rises to a certain height, a large amount of disk selling or buying is weak, which can impede the continued rise of the stock price. The support line means that when the share price drops to a certain height, the price of the product is getting weaker and weaker, so that the share price stops falling. From the perspective of supply and demand, "support" represents a concentrated demand, while "resistance" represents a centralized supply, and changes in supply and demand in the stock market. this results in a limit on stock price changes.
Both the force resistance line and the support line are important methods for graph analysis. Generally, if the stock price fluctuates up and down in a certain region and the accumulated transaction volume in this region is great, if the stock price overwrites or falls below this region, it will naturally become a support line or a resistance line. These prices that were once too large are often changed from the resistance line to the support line or from the support line to the resistance line: Once the resistance line is rushed, it will become the support line for the next decline; and once the support line falls below, it will become the resistance line for the next increase.

On the K-line chart, as long as the lowest price position appears multiple times in the same small interval, two identical lowest price bits are connected and extended to form a support line, which visually describes the stock within a certain price range, the imbalance between demand and supply. When the transaction price falls below this range, the seller is sold out due to a large increase in sales, making the price rise. Its internal essence is:

Due to the frequent occurrence of this-price range in the previous phase, a large transaction volume has been accumulated. When the market moves closer from top to bottom to the support line, the short seller's profit chips have been cleared, there is no pressure in your hands to empty your chips. Many users hold coins to absorb them at a low level to form a demand. Those who are not sure about the cards are locked, and the chips cannot be locked easily. Therefore, the supply in this Price Range is less than the demand, which naturally forms a strong support base. In addition, because the market has been back here for many times, it has also established a psychological support price range for the majority of investors. As long as there is no bad news, the market will rebound.

Technical analysis defines a price range with a large cumulative volume as a "transaction intensive area", that is, there is a high turnover rate in this intensive area. For the profit of goods collectors in intensive areas, they need to wait for the stock price to rise above this cost range. These goods collectors hold chips, as long as they do not lose confidence in the future trend, it will not throw a bargaining chip in this price range. It is difficult for the market to fall below this price point because the chip holders sell the chips on sale. On the other hand, due to intensive transactions, the amount of currency held has increased, and the amount of chips in the hands has been insufficient. That is, the supply of chips in the market has shrunk. Although there are still some who have lost confidence in the latter, but it cannot become a climate. Even if the support line is temporarily broken, as long as there is no combination of transaction volume and no profit margins, the price will return to the support line and above, and the psychological support of investors will be strengthened again.

After the market is temporarily supported in the transaction-intensive area, there are two possibilities for the latter:-, the rebound is rising; the second is that the majority of chip holders lose confidence. When the market looks bad, it throws a lot, that is to say, the support line is effectively broken, and the market continues to go down.

The support line is not only produced in transaction-intensive areas. When the market fell to 50% of the original rise wave, it would breathe a little while. in this range, there is often a support line, which is actually caused by the psychological factors of the majority of investors, according to technical analysis, this rising wave (or falling wave) returns to the starting point as a symmetry principle. In addition, the lowest price of the phase is often the psychological support of investors.