2. Support and resistance
Horizontal lines that price bounce from
Price tends to bounce off a few cents before or after.
Very seldom bounce off the exact price
7. How to use
Buy when price is close to support
Sell when price is close to resistacnce
8. Indicators
Give a signal whether price is overbought or oversold
Cannot be used alone
Use it as a supporting tool
9. Moving average
Most popular indicator
Calculated by taking the closing price of the previous
X periods and dividing it by X.
Can also be calculated using the opening price or
typical price etc.
Simple
Exponential