🔹Support and Resistance
Last updated
Last updated
When you picture a building, you have a floor and a ceiling. So, support is like a floor that is holding you up and resistance is a ceiling that keeps you from going up. Support and resistance are zones where the price can change directions as it bounces at these levels or breaks these levels.
why are these support and resistance levels respected by price? They identify high probability bound key decision zones for a bounce or break depending upon how strong these levels are based on the number of confluences of other key indicators like Fib levels, trendlines etc. that fall in the same zone. It can also depend upon whether the price is approaching a key level for the first time in which case it may typically bounce, not so for the subsequent attempts.
it's good to avoid trading into the support and resistance levels but we should trade away from them always
Support and resistance levels can break and once broken the broken support level can act as a resistance level and vice versa.
To spot support and resistance levels, look back at around 150-200 candles in that particular time frame that you are viewing.
