#Binance
today 7 – support and resistance
What is support?
It is a price level where demand is believed to be strong enough to prevent the price from falling further.
When the price approaches the support level, it tends to bounce upwards.
What is resistance?
It is a price level where supply is believed to be strong enough to prevent the price from rising further.
When the price approaches the resistance level, it tends to drop.
How do you determine support and resistance?
Look for previous price bounce points (repeated peaks and troughs).
Support levels are usually at previous troughs.
Resistance levels are at previous peaks.
Why are support and resistance important?
They help you identify entry and exit points.
Knowing these levels helps in placing stop-loss orders and profit targets.
They show you expected price movements.
Today's exercise:
Open a chart on Binance or TradingView.
Identify 3 support levels and 3 resistance levels on a currency pair.
Watch the price movement as it approaches these levels.
