📊 The most basic yet crucial aspect of trading: Support & Resistance
Understanding these concepts will prevent you from constantly being caught off guard by the market!
🔹 Previous highs/lows are natural reference points:
Breaking above a previous high = previous high becomes support; breaking below a previous low = previous low becomes resistance.
🔹 Sideways consolidation area:
A densely packed area; breaking above is a stronghold, breaking below is a ceiling.
🔹 Trendlines also have 'emotions':
Connecting the lows forms support; once broken, it turns hostile;
Connecting the highs forms resistance; once broken, it becomes friendly.
🔹 The position of moving averages is very important:
Above, it acts as support; below, it acts as resistance.
🔹 **Don't ignore the 'nodes' of volume candles:**
The bottom of a strong bullish candle = support; if broken, it reverses;
The top of a strong bearish candle = resistance; if broken, it becomes support.
⚠️ Key point: Whether support or resistance, neither is absolute. As long as there is volume, they can be penetrated! Don't just look at the charts; volume is the true sentiment.
