Follow this manual process for calculating support and resistance levels visually: Zoom out to a higher timeframe (daily or weekly). Mark obvious swing lows. Draw horizontal support lines. Mark obvious swing highs. Draw horizontal resistance lines. Refine lines at candlestick wicks (intraday extremes) and closing prices.

Reversal Patterns: Chart patterns like head and shoulders, double tops, and triple tops can indicate the formation of resistance levels. 8. Fibonacci Retracement: This tool can help identify potential resistance levels based on key percentages of a previous move. 9.

In light of support and resistance levels, it occurs when enough investors believe that a particular price level is important and effectively buy or sell the stock as soon as the price approaches that particular level, regardless of other market factors.

Through these case studies, it becomes evident that support and resistance levels are more than just lines on a chart; they are reflections of collective market psychology and can be powerful tools in forecasting market movements.