There are many professional terms that are not understood or even misinterpreted, which can lead to missed market opportunities or mistakes. Here I will explain them to you simply.
What is a support level?
When a market falls to a certain position, there will be many buy orders, which prevents the market from falling further and forms a support point, which is called a support level. There are three levels of support; every time the price reaches a support level, it will bounce back. If it breaks through directly, it means the decline is strong, and the market will continue to fall and reach the second and third support levels. The more it falls, the weaker the strength will be. At that moment, we can try to bet on a LONG order.
of a bounce at the support level. These support levels are also the positions where we sell SHORT orders or buy LONG orders. This way, you can combine the support levels provided by the market that I have issued to place your SHORT or LONG orders.
What is a pressure level?
When the price rises to a certain position, there will be many sell orders above it, which prevents the price from rising. This creates a pressure, which is called a pressure level. There are three levels of pressure. Breaking the first pressure level indicates strength and the price will continue to rise. When it reaches the second and third pressure levels, the higher it gets, the weaker the strength will be, just as people always need to rest while running. The market price will also fall. These pressure levels are also the positions where we sell LONG orders or buy SHORT orders. This way, you can combine the pressure levels provided by the market that I have issued to place your LONG or SHORT orders.
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