Day 6/20 – Understanding Support and Resistance 📈
Today I focused on one of the most common concepts in trading: Support and Resistance.
• Support – a price level where the market tends to stop falling because buyers step in.
• Resistance – a price level where the market struggles to go higher because sellers step in.
When looking at charts for Bitcoin, these levels appear many times and often influence price movement.
Traders watch these zones because they can help identify possible entry or exit points.$ETH $BTC
Watching How Price Reacts at Key Levels 👀
One thing I noticed while studying charts is how price reacts strongly when it reaches support or resistance levels.
For example, on charts of Ethereum, price often touches a level several times before finally breaking through.
This shows how buyers and sellers compete at these important zones.
Understanding these reactions can help traders avoid entering trades in the middle of nowhere.