Support and resistance are key points in the market where price temporarily stalls or reverses. Understanding these levels helps you plan trades more accurately and reduce risk.

📌Support: A level that price has difficulty falling below. Traders usually buy at these levels because they expect the price to bounce back up. A break below support may mean the price will continue to fall, so placing a stop-loss below support is essential.

📌Resistance: The level that the price has difficulty rising above. Traders usually sell at these points because they expect the price to bounce downward. A breakout above resistance may lead to a strong rise and is considered an opportunity to open buy positions.

🔥 For practical application:

1️⃣ Identify the most recent peaks and troughs on the chart.

2️⃣ Draw horizontal levels at these points.

3️⃣ Watch the price at these levels before deciding whether to enter or exit.

Using support and resistance, you can identify ideal entry and exit zones, set profit targets, and place stop-losses precisely. This foundation helps you trade systematically rather than at random.🔼

💡 Tip: The stronger the level (the more times the price has touched it), the more likely the price is to reverse strongly there.

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