Just like every car has "crumple zone"
- a criss-cross webcage of joints and steel members
which bend and absorb the energy generated by the impact in case of an accident
stock market charts too have crumple zones in the form of
supports and resistances.
Whenever there is an accidental or incidental fall or rise
the tremendous energy generated is absorbed by at these
support and resistance points
as a result of which a free fall or free rise is prevented.
This acts as a safety system for those who are caught on the wrong foot.
Whenever there are no support or resistance levels between two points
expect destructive energy to land on the traders caught in-between!
So, those who have nightmares about "circuits"
can take some heart from these crumple safety zones in the stock market.
But, remember, when you see yourself saved by the crumple zone in front of your nose, treat it as time given to you to eject. Crumple zone chain reaction may finally stop only after you!
Check your stock or index for these today!
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