Support and resistance levels are displayed in the chart in different forms, which are Horizontal and diagonal.
Horizontal Support and Resistance Levels
Horizontal support and resistance levels, these are the easiest kind to identify there created when an asset price moves up and down inside the same price range.
A resistance level that gets broken through, usually becomes a support level.
The reverse is also true, a support level that gets broken through usually becomes a resistance level.
Diagonal Support and Resistance Levels
Diagonal support and resistance lines are more difficult to identify and created when an asset price rises and falls in the staircase plan.
In case of uptrend, these patterns create increasingly higher points of troughs, in cases of a downtrend, the peaks and troughs become increasingly lower.
Diagonal support levels indicate the trend’s direction.
In order to obtain a particularly effective indicator, it is recommended that both horizontal and diagonal levels be analysed together.