Support and resistance

This product was added on the quality assurance side of the portal business arising from the substantive and / or formal defects. You can help by you are removing the deficiencies mentioned there or you engaged with any of the discussion.

A resistor is a term used in technical analysis and describes a zone in the price chart of securities, rising prices often experienced price corrections when reached by the analyst believes. Rate zones that can stop price declines are called Zones.

Whether it is possible with resistance zones with a probability that goes beyond coincidence successes actually identify and thus make statements about the future price development of a security that has not been scientifically proven and controversial.

When a trend was broken in a resistance zone, which is an indication of a possible trend reversal. Conversely, a breakthrough can be interpreted as a trend confirmation.

The reason for this behavior lies in the fact that upon reaching a zone of resistance, many traders their securities sell (or at Zones short sellers to close out ) in order to realize and wait to see if the zone is breached or a trend reversal occurs gains. This behavior opposes the direction of motion and can reverse the course direction. If such a zone but ( sustainable ) broken, this is interpreted as a trend confirmation and many market participants buy after ( or push at breaking through support zones from their securities ) and thereby enhance the price increase or slip - in trend direction. Resistance zones thus act selbstprophezeihend.

• Financial Analysis