Here's how to gauge support and resistance reversals for consistent profits

Support and resistance are two distinct aspects of price, but together they represent the importance of significant levels that have a major impact on the trend. Support is the area that facilitates buying momentum, whereas resistance is the roof level that the price is unable to conquer or go beyond.

A number of market participants trade only on the basis of support and resistance zones. This seems risky, but over the years, this theory has proven to be a reliable trading model. A perfect determination of a support or resistance indicates “when to enter and when to exit” the trade.