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Topic: Resistance & Support Areas |
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michaelthekingbe
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Posted on: Feb 20, 2009 - 4:32pm
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Why do the levels and Stength numbers keep changing?
When there is a T+10 , that says that a lot of price activity and volume happened and this is a strong area of support or resistance. Yet a few days latter the same area has different values.
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dan.chapmano3
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Posted on: Feb 24, 2009 - 10:59pm
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Michael,
Most support and resistance levels will adjust slightly as the stock moves up and down. Single support and resistance levels will adjust the most especially if the level is newly formed.
Typically T (and T+), 10 support or resistance levels do not adjust very much unless: a support/resistance level drops off the chart (old data), a large move drops off the chart (old data) or the stock has lately had very high volalilty (as with many stocks with a drop in price).
Thanks,
Dan
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