Support and Resistance stop and reverse direction

Support and Resistance stop and reverse direction
Support and resistance is appreciated that the movement should stop and reverse direction. Think of support / resistance (S / R) as levels that act as a floor or ceiling to future price movements.
Support - a price level below the current market price at which buying interest should be able to overcome selling pressure and thus keep the price from going any lower.
Resistance - A price level above the current market price at which selling pressure should be strong enough to overcome the buying pressure and thus keep the price from going any higher.
One of two things can happen when the stock price approaches a support / resistance level. On the one hand, it can act as a turning point: in other words, when the share price drops to the level of support will go back up. On the other hand, S / R levels may reverse roles once they are penetrated.
For example, when the market price falls below the level of support that former support level will then become a resistance level when the market later trades back to that level.
This table shows an excellent example of support and resistance levels of General Electric (GE). Note that since the stock price penetrated below the support level in December, he became a resistance level.
You also need to understand that S / R levels vary in strength, leading to certain price levels are designated as major or minor S / R levels. For example, five-year high on the bar chart will be much more significant and useful resistance level of one-month resistance level.