Support and Resistance on the Axis or Candle Body
A support point is a point that is believed to be the low point of an asset for a certain period. While the resistance point is the point that is believed to be the highest point of an asset for a certain period. The basic trading law of support and resistance points is, when price movements approach the support and resistance points there will be a temporary price reversal or bounce, whereas if after the bounce occurs, the price continues to move through the support or resistance points, a breakout occurs and price movements will form a point. new support and resistance. When there is a breakout or a breakout of the resistance point upwards, then the resistance point in the past can become a point of support in the future, and vice versa, when there is a breakout or a break of the downward support point, then the support point in the past can become a point of resistance in the future. will come.
Support and resistance are able to restrain the rate of price movement, but that does not mean that these levels will last forever. A support will no longer be able to withstand a downward movement if it turns out that at that time the demand is no longer large enough. On the other hand, the same thing will happen to the resistance, where the supply is no longer large enough to withstand the upward movement.
So, when the resistance breaks, the price will continue to move up. Resistance that was above the price, now its position is below the price. That's when resistance becomes support. Likewise with support, when support breaks (breaks) then the price will continue to move down. Support, which was below the price, is now above the price. That's when support becomes resistance.
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