What is the formula for support and resistance?

There is no specific formula for support and resistance. If you can use point and figure chart support and resistance are clearly visible on the chart. How do I identify support and resistance? Support and Resistance are based not on indicators but on the candlestick price patterns and trend.

What is a support & resistance level?

Support and Resistance (S&R) are predetermined levels from where the price of assets (assets can be in the form stocks, commodities, futures etc) may reverse and if the S&R level is broken then the prices may continue its ongoing trend. What is Resistance? What is Support? How to draw Support & Resistance Level in a chart?

How do you use support and resistance?

The first way to use support and resistance is to enter into a position when you think a reversal will occur. For example, the stock price has dropped, and it has now reached a resistance area. The indication is that the price will bounce off the resistance level and begin increasing. Another option is a breakout.

What is support and resistance in technical analysis?

In technical analysis, support and resistance are points where price would reverse its trend. Traders usually buy at support and sell at resistance. It identifies price level where price react by reversing or slowdown, previous price behavior at these levels is a clue for future price behavior and is useful for prediction.