I will explain how to determine key levels (Key Levels) in trading

1 Open the Chart

2. Look for areas where the price has bounced multiple times:

If the price bounces from bottom to top ⇒ this is called Support.

If the price bounces from top to bottom ⇒ this is called Resistance.

3. Draw a horizontal line on these areas that the price has touched frequently (as shown in the picture).

4. The more times the price touches the line, the stronger the level.

5. The level may change depending on the trend:

Support may turn into Resistance after being broken.

Resistance may turn into Support after being breached.

6. Use these levels:

To determine entry and exit points.

To set a Stop Loss order.

To define targets (Take Profit).