#Binance
🎯 Support and Resistance in Trading: Keys to Success! 💡
In the world of trading, many trades are decided at support and resistance points. But what does that mean? 🤔
🔵 Support:
It is the area that the price reaches and bounces back up from. It's like solid ground preventing the price from falling further. There is strong demand at this level.
🔴 Resistance:
It is the area that the price reaches and bounces back down from. It's like a ceiling that holds back the price. There is strong supply preventing further rise.
✅ When the price breaks support, we might see a stronger decline.
✅ When it breaks resistance, it often continues its rise.
🔥 The smart trader monitors these points, as they are ideal places for entering or exiting a trade, or for setting stop loss.
🚀 Remember:
The market does not always move in a straight line, but fluctuates between support and resistance levels. So understand it, monitor it, and let it be your ally in trading.
