What you need to know about Support and Resistance ..?

  • Support is a horizontal area on your chart where potential buying pressure could come in and push the price higher.

  • Resistance is a horizontal area on your charts where selling pressure could come in and push the price lower.

  • The more times support or resistance is tested within a short period of time, the greater the likelihood it will break.

  • Observing support and resistance is one way to identify an area of value on your charts. Others include looking at the moving average, trendline, channel, etc.

  • Support tends to break in a downtrend or when there are lower highs into support.

  • Resistance tends to break in an uptrend or when there are higher lows into resistance.

Source: Price Action Trading Secrets Book


Disclaimer: Below price chart shared for Educational purpose only, Not a recommendation to take the trade.



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