Support and Resistance
Support and Resistance help you understand where the price is likely to pause, reverse, or break out.
- Support is a price level where buying interest has previously come in and stopped the fall.
- Resistance is a price level where selling pressure has earlier prevented the price from moving higher.
On Tradomate, Support and Resistance are derived from pivot points, so the levels update dynamically based on recent market structure instead of being fixed or manually drawn.
How traders use it
Section titled “How traders use it”- Buy near support when price shows signs of holding or bouncing.
- Sell or book profits near resistance as price approaches a known supply zone.
- Trade breakouts when price closes decisively above resistance or below support.
- Place stop-losses just beyond support or resistance levels.
Because these levels are calculated relative to the current price, they stay relevant to what the stock is doing now.
Simple example
Section titled “Simple example”If Reliance is trading at ₹1,500 and the nearest resistance (R1) is at ₹1,560, traders may expect selling pressure near that level.
If price breaks and sustains above ₹1,560, it could signal a potential breakout.
Similarly, if the nearest support (S1) is at ₹1,440, traders may watch this level for buying interest and also use it as a reference for stop-loss levels.
| Parameter | Description | Default Value |
|---|---|---|
| Window | Number of candles to the left and right of the pivot points | 10 |
| Resistance Level | The resistance level relative to price (R1 = nearest resistance above price, R2 = second nearest and R3 = third nearest) | 1 |
Pivot Points (Pivot High & Pivot Low)
Section titled “Pivot Points (Pivot High & Pivot Low)”Pivot Points mark important swing highs and swing lows in price action.
They show where price has previously reversed direction, helping traders understand market structure.
- A Pivot High forms when price moves up, pauses, and turns lower.
- A Pivot Low forms when price moves down, pauses, and turns higher.
These levels are often used to judge trend strength, breakouts, and pullbacks.
How traders use pivot points
Section titled “How traders use pivot points”- Identify higher highs and higher lows in an uptrend.
- Watch for breakouts above pivot highs.
- Track support zones near pivot lows during pullbacks.
Simple example
Section titled “Simple example”If a stock breaks above its latest pivot high, traders may see it as a sign of strength.
If price fails near a pivot high and reverses, it can indicate resistance.
Similarly, if a stock holds above its latest pivot low and bounces, traders may see it as a sign of underlying support and strength.
| Parameter | Description | Default Value |
|---|---|---|
| Window | Number of candles to the left and right of the pivot points | 10 |
| Pivot Offset | Which pivot to reference (1 = most recent pivot, 2 = previous pivot and so on) | 1 |