In general, the first 30 minutes after the market opens is t...
In general, the first 30 minutes after the market opens are the most active period of the day's trading, reflecting the value judgment of ordinary retail investors. Retail investors typically choose to close or open positions right at the opening, so the opening price is usually near the high or low of the daily chart, and then the price gradually trends towards rationality. Meanwhile, institutions generally choose to operate near the close to avoid holding positions overnight.
The candlestick chart is formed by the pillars formed after each day's trading, which then form various patterns and trends. Now, let's discuss together the resistance and support levels.
Concept of Support and Resistance
Resistance: When the selling pressure forcefully interrupts the uptrend, when the market price reaches a certain level, it seems to create a pressure line that affects the stock price from continuing to rise, acting as a resistance line, which we call a resistance line or resistance level.
Support: When the buying pressure forcefully interrupts the downtrend, when the market price reaches a certain level, it seems to create a support line that affects the stock price from continuing to fall, acting as a resistance line, which we call a support line or support level.
Resistance: When the selling pressure forcefully interrupts the uptrend, when the market price reaches a certain level, it seems to create a pressure line that affects the stock price from continuing to rise, acting as a resistance line, which we call a resistance line or resistance level.
Support: When the buying pressure forcefully interrupts the downtrend, when the market price reaches a certain level, it seems to create a support line that affects the stock price from continuing to fall, acting as a resistance line, which we call a support line or support level.
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