In simple words the meaning of resistance is opposition.
As the name indicates, it opposes the share price going in upper direction.
It is the level where share price may stop before continuing its upper journey.

But if the buying starts from all sides then no resistance come into picture the resistance level is just broken and share price will continue its upward journey.

To break the resistance level volumes also play the major role.

If the share price moves above the resistance level with huge support of volumes then it is considered as confirm up trend.

Once the resistance is broken then the share moves till its next resistance level or go in consolidation (share movement with very less price variation) phase and then after getting appropriate buying with good support of volumes then it tries to break its next resistance level and will proceed and this continues.

The major bullish resistance is considered as 200 DMA (daily moving average)
How to Find Resistance and Support
Resistance and Support
• What is the meaning of resistance and support?
• How to calculate resistance and support for trading and for investing?
1. Moving average method
It is the one of the mostly widely used method to find support and resistance.
Most commonly used moving averages are 30 DMA (daily moving average), 50 dma, 100 dma, 150 dma and 200 dma.

We daily update the shares which have broken its initial 30 days moving average resistance levels and on their way for their next resistance levels so these shares may be considered as moving in upward direction.

If you are looking for resistance and support for any specific stock then please write to us and we will provide the same.

2. Pivot point based
The following formula is used to calculate Pivot point based support and resistances.
Following is the formula Where "S" represents the support levels, "R" the resistance levels and "P" the pivot point. High, low and close are represented by the "H", "L" and "C" of previous day respectively

Resistance 2 = Pivot + (R1 - S1)
Resistance 1 = 2 * Pivot - Low
Pivot Point = ( High + Close + Low )/3
Support 1 = 2 * Pivot - High
Support 2 = Pivot - (R1 - S1)
3. Making higher highs and lower lows
This strategy is especially useful for day trading.
In day trading if any stock has made any high in the morning trading hours (or any time during the time) then that high level will act as resistance for that stock for that day.

On the other side if any stock makes low in the morning trading hours (or any time during the time) then that low level will act as support for that stock for that day.

4. Fibonacci retracement levels

5. Parabolic SAR
Fibonacci and Parabolic methods are not covered because they involve complex calculation.

We are trying to implement them in our technical charts which are in process.
Please contact us and we will send all the information.
Your Trading Place
As long as the share or index is trading above this level then it is considered as bullish or if share or index moves from bottom and breaks this level then further upside is confirmed and on the opposite side if the 200 DMA is broken from above then the down trend will continue and this is what happened with Nifty and Sensex when they broke their 200 DMA in January 2008.
Market has seen more then 60% fall after the broke of 200 DMA support level.

Resistance broken will act as support level (in case of moving average method).
You will come to know different types of calculating support and resistance.

As the name indicates it provides support for to share price to prevent it from falling further.
If the share price starts falling then it is expected that it may take halt at its support level but if the selling and especially short selling is taking place then no support will comes into pictures.
If the selling pressure is from all sides then it may or may not take halt or wait near its support level and will continue its downward journey till it finds next support levels.

The resistance broken will act as its support level.

How to calculate the support and resistance levels?
There are many ways to calculate the resistance and support levels which is generally based on traders and investors strategies and trading and investing methods. 

Following are few common methods used to find support and resistance.
1. Moving average based
2. Pivot point based.
3. Making higher highs and lower lows
4  Fibonacci retracement levels
5. Parabolic SAR
Do you need more information about day trading - Following key words can be used
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