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Support and Resistance in Trading
Support and Resistance (S&R) are key price levels on a chart.
Support is where price tends to stop falling because buyers step in. Think of it as a floor.
Resistance is where price often stops rising because sellers take profits. This acts like a ceiling.
Traders use S&R to plan entries, exits, and stop-loss levels. When price breaks through these zones, it often signals a strong move in that direction.
Understanding S&R helps traders spot trends and reversals more effectively.