HOW TO TRADE WITH SUPPORT AND RESISTANCE

### Trading with Support and Resistance

Support and resistance levels are essential tools in trading.Support is a price level where demand tends to be strong enough to prevent further decline, while resistance is where selling pressure prevents the price from rising further. Recognizing these levels can help traders refine their entry and exit strategies.

#### **Key Trading Strategies**

1. **Buying at Support**: When the price approaches a support level and shows signs of rejection, traders might enter a **long** position, anticipating a price rebound.

2. **Selling at Resistance**: When price reaches a resistance level and struggles to break through, traders might **short** the asset, expecting a decline.

3. **Breakout Trading**: If the price **breaks** through support or resistance with strong momentum, it may indicate the start of a new trend.

4. **Retest and Confirmation**: After a breakout, the price often **retests** the broken level. If it holds, traders may use it as a new reference for entry.

5. **Using Candlestick Patterns**: Candlestick formations, like **pin bars or engulfing patterns**, provide additional confirmation of reversals or continuations.

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