3) Technical Analysis
Why do stock prices often 'bounce' at certain levels? It's like there's an invisible wall. Those walls are called Support and Resistance — and if you can read them, you have a huge edge over other traders.
Support is a price level where buying pressure is strong enough to prevent price from falling further. Resistance is a level where selling pressure is strong enough to prevent price from rising higher. Both are formed by market psychology and price history.
Imagine a room in a house. The floor is support — you can jump on it but won't fall through (unless the floor breaks). The ceiling is resistance — you can jump as high as you want but can't break through (unless there's a hole). If the floor collapses? You fall to the lower level. If the ceiling breaks? You rise to the upper level. That's exactly what happens when support/resistance 'breaks' — a breakout.
BBRI once had strong support at the Rp 4,500 level. Every time the price dropped there, buyers stepped in and the price bounced up. But when the Rp 4,500 support finally broke, the price quickly fell to Rp 4,200. Interestingly, the Rp 4,500 level that was previously support turned into resistance — the price struggled to climb back above it. This is called role reversal.
After understanding this concept, apply it in tools so decisions become more objective and measurable.
Open Profit / Loss CalculatorHow do you know if a support/resistance is strong?
Strong support/resistance has usually been tested multiple times (price bounced at that level 3 or more times), accompanied by heavy volume, and sits at psychological numbers like Rp 1,000, Rp 5,000, or Rp 10,000.
What should I do when support breaks?
If you already own the stock and support breaks, it's a signal to cut loss according to your trading plan. Don't hope for a recovery — broken support typically becomes new resistance and price tends to fall further.
