What is the difference between support and resistance? The basis of any successful analysis!
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In the trading world, most decisions rely on two main levels on the chart:
Support and Resistance
Understanding them correctly = More accurate decisions, safer trades.
Support:
It is the price level that is expected to prevent the price from falling further because buyers show up strongly at this level.
Example: If a currency has bounced 3 times from the same area… this is often strong support.
Resistance:
It is the exact opposite – a level expected to stop the rise because sellers are pressuring at this level.
If the price fails to break this level multiple times… this is a resistance that should be taken into account.
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How do I use them?
Buying at support with a small stop loss below it
Selling at resistance or waiting for a breakout to enter a buy position
Combining with indicators like RSI and MACD increases the accuracy of the prediction
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Important note:
> There is no "unbreakable" support or resistance – capital management remains the most important factor always!
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Do you rely on supports and resistances in your trades?
Share your experience or personal strategy in the comments – let the benefits be shared.
