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kmuthu
Trading Beginners Q and A
Here’s a simple beginner-friendly guide to understand Support & Resistance (S&R) from scratch — no indicators, no analysis, just concept:
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🧱 What is Support?
Imagine a ball falling on the floor.
The floor prevents it from falling further — that’s support in trading.
Support is a price level where buyers step in and stop the price from falling lower.
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🧱 What is Resistance?
Now imagine the same ball thrown upward — it hits the ceiling and bounces back.
That ceiling is resistance.
Resistance is a price level where sellers step in and prevent the price from rising higher.
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🎯 Think of it like this:
Term Real-Life Example Trading Meaning
Support Floor — holds you up Price level where buying interest is strong
Resistance Ceiling — blocks your way Price level where selling pressure is strong
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🧠 Why It Happens?
Traders remember past price zones.
If a stock bounced up from ₹100 before, many people will buy again near ₹100.
If it fell from ₹150 before, many people will sell again near ₹150.
This creates invisible walls where price reacts.
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📝 Best Way to Learn It as a Beginner (Step-by-Step):
1. Use plain line charts (not candles) first
This helps you focus only on price movement.
2. Pick one stock/index (like Nifty or Reliance)
Watch its 1-day or 1-hour chart over the past few weeks.
3. Mark zones where price turned direction 2 or more times
If price went up from the same level → mark it as support
If price fell from the same level → mark it as resistance
4. Practice spotting these levels visually
Don’t worry about being perfect — just train your eyes.
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📌 What NOT to do as a beginner:
Don’t draw 10+ lines — focus on major obvious zones only
Don’t rely on auto-indicators in the beginning
Don’t jump to real trades just because you “found” S&R — observe first
Jul 17 6:21 PM
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