1. Definition

The support level is the price at which the stock price rebounds or the trend reverses and rises during the decline. The principle is that the banker will have a cost price when opening a position. If it continues to fall, it will endanger his interests. Therefore, the stock price will always be maintained at a position near its cost price.

The pressure level is the price at which the stock price rebounds and falls or the trend reverses and falls during the rising process. The principle is that in the process of driving up the stock price, the market maker has accumulated a large number of hold-up orders from above. If it is forced to raise the stock price blindly, it will trigger a large number of selling, which is not conducive to the banker's profit.

2. Classification

There are three main pressure levels and support levels:

1. Moving average pressure level and moving average support level;

2. The high pressure level and the low support level;

3. The upward gap support level and the downward gap resistance level.

3. Transformation

Support and resistance levels are not static. If a major resistance level is broken, the resistance level will naturally become a support level. On the other hand, if the support level is broken, the price will become a resistance level for future stock price increases.