Support level refers to the price that may be supported when the stock price falls, so as to stop falling and stabilize. It corresponds to the resistance potential. Resistance level refers to the price that may encounter pressure when the stock price rises, thus reversing the falling price.

Resistance level, also known as pressure level, means that when the price rises to a certain price, the price stops rising or even falls back.

Resistance potential is an important method of trend analysis. The reason for this is generally that the price fluctuates up and down in a certain area, and a relatively large volume of transactions has accumulated in this area. After the price crosses or falls below the region, the region naturally becomes the resistance level of the price.

Relationship between resistance level and support level:

When the stock price is running, resistance and support are interchangeable. Specifically, if a major resistance level is effectively broken, then this resistance level will in turn become an important support level in the future; On the other hand, if the important support level is effectively penetrated, the price will become the resistance level of the future stock price rise.