Why are Supports and Resistances so important in the market?
If you trade or follow the cryptocurrency market, you have probably heard about support and resistance. But... do you really understand why these points are so important?
Support:
It is a region where the price tends to stop falling and start rising. It acts like a "floor" — an area where buying pressure is usually higher, preventing stronger declines.
Resistance:
It is the opposite. A region where the price tends to stop rising and start correcting. It is like a "ceiling" — a barrier where many sellers appear.
Why are they important?
They are decision points in the market.
Traders use these levels to plan entries, exits, and even stops.
Where many see danger, others see opportunity.
Breaking a resistance can lead to strong surges.
Losing a support can lead to sharper declines.
Understanding these levels is essential for those who want to trade more consciously and reduce risks in the market.
And you? Do you usually trade looking at support and resistance?
Comment below!