🔹 What are Support and Resistance? 🔹
In the world of trading, support and resistance areas are among the most important tools of technical analysis for making precise entry and exit decisions.
✅ Support:
It is the price level from which prices tend to bounce upward during a decline, as it represents an area where buying is abundant. It is as if the price "leans" on it.
✅ Resistance:
It is the area where the price has difficulty rising and retreats downwards from it, due to the abundance of sell orders. It is as if the price "collides" with it.
🔁 When the price firmly breaks through resistance, it often turns into new support, and vice versa.
📊 Traders use these areas to determine:
Entry points (Buy near support)
Exit points (Sell near resistance)
Safely placing stop-loss orders
🛠️ Helpful tools: Trend lines, moving averages, and MACD to confirm breakouts or bounces.
💡 Remember: Support and resistance are not fixed numbers but "estimative areas," and their strength increases as reactions at those levels become more frequent.
