How Traders Manifest Price Support Levels

Understand the psychology behind support and resistance (part 1/2)

I am dedicated to teaching you what I know about how markets work. My belief is that knowledge closes the gap between rags and riches. If you can garner an understanding of the concepts I write about, it’ll help you no matter what your strategy is.

One major concept I cover heavily is trader psychology: how are others thinking about the market right now? This post centers on price support, a common charting technique many traders use to buy stocks. Understanding the psychology behind why support and resistance work is a pillar to successful trading. That’s what this 2-part series is all about.