𝙎𝙊𝙋𝙊𝙍𝙏𝙀 𝙔 𝙍𝙀𝙎𝙄𝙎𝙏𝙀𝙉𝘾𝙄𝘼

👩‍🏫WHAT IS SUPPORT AND RESISTANCE ? CERTAINLY! LET’S SIMPLIFY THE CONCEPT OF SUPPORT AND RESISTANCE WITH A STRAIGHTFORWARD EXPLANATION: “Support And Resistance” is one of the most widely used concepts in trading. ‘Support’ And ‘Resistance’ are terms for two respective levels on a price chart that appear to limit the market’s range of movement. 👩‍🏫Support: Support is like a step where prices often stop falling and bounces back up. Think of it as a floor that prevents prices from going lower. Traders like to buy here. 👩‍🏫Resistance: Resistance is like a step where prices struggle to go higher & normally stops rising and dips back down. It’s like a barrier. Traders often sell here. Now, look at this simple chart: Resistance levels indicate where there will be a surplus of sellers. Support levels indicate where there will be a surplus of buyers. In this way, resistance and support are continually formed as the price moves up and down over time. 👩‍🏫Looking at the line chart, you want to plot your support and resistance lines around areas where you can see the price forming several peaks or valleys.#Write2Earn 📌Trade the “Bounce” Buy when the price falls towards support. Sell when the price rises towards resistance. 📌Trade the “Break” Buy when the price breaks up through resistance. Sell when the price breaks down through support. 📌Often times you will see a support or resistance level that appears broken, but soon after find out that the market was just testing it.With candlestick charts, these “tests” of support and resistance are usually represented by the candlestick shadows.#Write2Earn 👩‍🏫Trendlines: Draw lines connecting the bottoms (up-trend) or tops (down-trend) to see the overall direction. 👩‍🏫Breakouts and Breakdowns: When prices break through the ceiling (resistance) or fall through the floor (support), it can signal a big move. 👩‍🏫Separating Real Breakouts from False Breakouts : For me it is a general rule that a candle wick beyond a psychological area is not a breakout. I consider a real breakout to occur only in situations when the price of the pair closes the candle beyond the level. This way we get a more reliable breakout signal, one which can be used to trigger a position in the respective direction. Have a look at the image below:👩‍🏫Remember, support and resistance levels can change, and it’s like navigating stairs. Traders use these levels to make decisions, like when to buy on the way up or sell on the way down. Happy stair climbing in the trading world! 🌟🍀🌟#Write2Earn #TrendingTopic