Trading Using Support and Resistance
In trading, there are many strategies that can be used, one of which is determining support and resistance levels. The terms support and resistance are used by traders to indicate the price level on the chart which acts as a barrier or the term bounces, at a certain price level the movement is stuck (cannot go higher or fall deeper).
Resistance is the price that moves up and then immediately drops back down, the highest point reached before the price moves down again. While support is the lowest point reached before the price moves up again. Thus, they will continue to form all the time as the price moves up and down.
Support and resistance is not a fixed number. Often traders see prices move beyond the support and resistance lines that traders have made. However, it turned out that it was not the breakout that occurred, but "the market is testing" the support and resistance levels. Traders use support and resistance levels to identify price movement on the chart and determine at what price level a trend reversal or trend occurs. Areas of support and resistance can be identified using trend lines.
Thus this short article may be useful for all traders. If you don't understand, please watch the video below!
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