Question 1

What is stock support and resistance?

Accepted Answer

Support is the price floor where buyers historically stepped in — calculated as the average of the 5 lowest daily lows over the past 6 months. Resistance is the price ceiling where sellers appeared — the average of the 5 highest daily highs over 6 months. When a stock is near support, it may bounce. Near resistance, it may pull back.

Question 2

What does stock volatility (Huge Swings, Large Swings, Moderate, Low Volatility) mean?

Accepted Answer

Stock character classifies how much a stock swings based on 2-year data. Huge Swings: volatility above 60% and max drawdown above 40%. Large Swings: volatility above 40% and drawdown above 30% — most AI and semiconductor stocks. Moderate: volatility 25-40% — big tech and enterprise software. Low Volatility: volatility below 25% and drawdown below 20% — rare in tech.

Question 3

What is S/R Position and how do I read it?

Accepted Answer

S/R Position shows where a stock sits between its support and resistance levels: (Price - Support) / (Resistance - Support). Green bar near 0% = near support (potential bounce). Red bar near 100% = near resistance (potential pullback).

Question 4

What does percent from peak mean?

Accepted Answer

Percent from peak shows how far a stock has fallen from its 3-month high. 0% means at its recent peak. -25% means it dropped 25%. Stocks with large drawdowns may present buying opportunities if fundamentals remain strong.