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📘 **Chart Reading Education Series – Lesson 3: Support and Resistance 🧱**
If you don’t know where the support and resistance are… then you’re almost trading with your eyes closed 👀
These are some of the strongest tools that help you know where to buy and where to sell, and where the price might change direction.
🔹 **Support:**
It is a zone or level that is difficult for the price to break below, because there is strong demand (people buying).
📍 This means when the price reaches a support area, it might bounce back up.
🔸 **Resistance:**
It is an area that the price finds it difficult to break above, because the supply is large (people selling).
📍 This means when the price reaches resistance, it might start to drop.
💡 **How to identify them?**
* Look at the places where the price has touched multiple times and bounced back from.
* Draw horizontal lines at the prominent peaks and troughs.
* Use tools like: Moving Average – Trendlines – Fibonacci
🎯 Why are they important?
* They help you determine your targets and stop losses.
* You can anticipate market reactions.
* Buy close to support and sell close to resistance (not the other way around!)
📌 In the next lesson, we will talk about **Trends** and how to identify the overall direction and analyze its movement.
👇 If you find this series beneficial, like and share the post to reach more people, and I’m waiting for your opinion in the comments 💬
