Simple way of Support & resistances for trading.

Support and resistance are important levels at which point supply and demand exist predominantly. In the real market place, prices are moved by excessive supply (from resistances) and demand (from supports). Support & resistances form integral part of trend following.
In the good old times, traders remember two most simple points from where good amount of buying(support) emerged as well as sellers (resistance) appeared. They have kept only these two points of a particular time frame(short term- for intraday and medium term for positional) and carry out their trades. The moment a support or resistance points are exceeded significantly, they adjust themselves to the new development and change their supports to resistances in the case of a fall and vice versa.
In my price analysis, I give more weightages to such cluster points of supports and resistances and combine them with classic TA and Elliott wave study to add to a likely emerging patterns. To arrive at more reasonable cluster points, use a horizontal lines on the price chart & spot the points where prices have found persistent supports and resistances.
You will do well to study the price charts of all the time frames - month,week, day and Hour and use them in your trading plan. For eg: when a day cluster support merges with a month cluster support, expect it to hold and a strong rally to emerge.

For positional traders:
For Intradayers:
This is the most basic aspect of technical analysis and also the minimum home work that is to be carried out by any trader before venturing out to the trading arena.

No matter in what time frame you trade, these support & resistances exist in all time frame and the importance of them increases as the time frame becomes larger. And the trader would do well to assign weightages to these crucial numbers accordingly.

Get Rich Slowly and surely.