#TradingTools101 What are support and resistance lines — and how to use them correctly?

One of the simplest yet most powerful tools for a trader are support lines (support) and resistance lines (resistance).

🔹 Support line — this is a level at which the price tends to stop falling and bounce back up.

🔹 Resistance line — this is a level at which the price usually encounters a barrier and cannot break above.

📈 Why does this work?

These levels are formed through market psychology: traders remember key entry/exit points and repeat these actions.