ABSTRACT
Support and Resistance As illustrated by Figures 13.1 through 13.12, the phenomena that we shall study in this chapter are markedly different in kind from those discussed in preceding sections. We shall look now at the stock market from a new angle, and in so doing may nd it possible to develop some very practical additional rules to guide us in selecting stocks for purchase or sale, in estimating their potential moves, and in foreseeing where they are likely to “run into trouble.” As a matter of fact, some experienced traders have built their “systems” almost entirely on the principles of what we here call Support and Resistance, paying no attention to the specic pictorial patterns of price and volume action we have been investigating in preceding pages.
