What Is Volume in Stock Market?

Definition • Support is the price level at which a stock tends to stop falling due to buying interest. • Resistance is the level where a stock tends to stop rising due to selling pressure. These are psychological and technical zones where traders expect price behavior to change. How They Work • When a stock approaches support, demand usually increases, pushing the price back up. • When it nears resistance, supply or selling activity increases, causing the price to fall. Why They Matter • Help traders decide entry and exit points. • Used to place stop-losses and target levels. • Often signal trend reversals or breakouts. Example If a stock repeatedly bounces around ₹100 and reverses every time it nears ₹120: • ₹100 = support • ₹120 = resistance Breakouts • Breakout above resistance: May signal bullish trend. • Breakdown below support: May signal bearish trend. • Confirmed breakout often requires high volume. Types of Support/Resistance • Horizontal Levels: Fixed price zones. • Trendlines: Sloped support/resistance along a trend. • Moving Averages: Dynamic support/resistance. • Fibonacci Levels: Based on ratios derived from mathematical sequences. Limitations • Not always precise—zones can vary. • Fakeouts (false breakouts) are common. • Must be confirmed with volume or other indicators. Used With • Volume analysis • RSI and MACD for momentum • Candlestick patterns for confirmation