What do most investors regard as resistance lines and support lines to expect the rise and fall of stock prices?
What are resistance lines and support lines?
First of all, I’ll explain resistance lines and support lines themselves before specifically introducing resistance lines and support lines.
Resistance lines are the lines to resist the rise and fall of stock prices. If the resistance line is above(below) the stock price when the stock price is rising (falling), rise(decline) become dull at the same time as the stock price has reached the resistance line. Stock prices might also turn to fall (rise).
Support lines are the inverse of the resistance lines. Resistance lines will interfere with rise and fall of stock prices, but support lines make roll to support rise and fall of stock prices. In other words, when the support line below(above) the stock price when the stock price is rising (falling), the stock price will receive the support of the rise(decline) at the same time that the stock price has reached the support line.
Support lines and resistance lines specifically monitored by most investors.
What do most investors regard as resistance lines and support lines? Resistance lines and support lines on a daily chart, a weekly chart, and a glance equilibrium table(Ichimoku Kinko Hyo) are presented bellow.
■A daily chart
5-day moving average line
25-day moving average line
75-day moving average line
200-day moving average line
■A weekly chart
13-week moving average line
26-week moving average line
52-week moving average line
■ A glance equilibrium table(Ichimoku Kinko Hyo)
Lagging line(Chikou span)
Preceding span 1(Senkou span A)
Preceding span 2(Senkou span B)
What is very important here is that “most” investors regard the lines and the spans above mentioned as the resistance lines and the support lines. In order to win in the stock investment, we need to accurately make a decision whether to buy or sell the stocks according to whether most investors feel like buying or selling. It is very important for us to know what most investors monitor and how they feel.
Some investors monitor the 7-day moving average line rather than the 5-day moving average line, nevertheless most investors monitors the 5-day moving average line. This is one of the typical loser’s cases.
Your next action
Change the setting of the char software you use every day to display the lines and the spans introduced above. And, think of how most investors feel now according to the charts to design a investment strategy.
The contents of this blog are written based on the personal opinions about resistance lines and support lines, and the sentiment of short-term investors, medium-term investors, and long-term investors. With respect to the loss caused by investment based on the contents of the blog, I do not take any responsibility.