In technical analysis Support and Resistance are not just simple horizontal lines but fierce battlefields where the mind game between buyers and sellers takes place
š¹ Support zone is the price level where demand is believed to be strong enough to prevent price from falling further like a floor bouncing price up when touched
šø Conversely Resistance zone is the price level where selling pressure increases strongly preventing price increase like a ceiling causing price to bounce back down
š¹ The nature of these zones is Market Memory where strong price reactions occurred in the past making investors remember and act similarly when price returns there
šø Understanding this nature helps you stop drawing messy lines on the chart and focus on real value zones where big money is waiting
Do you usually identify resistance with the naked eye or use support tool?
This article is for reference only, this is not investment advice. Please read and consider carefully before making a decision.