$SCRT /USDT

**Understanding Support and Resistance in Trading**

Support and resistance are essential concepts in technical analysis that help traders identify key price levels in financial markets. **Support** refers to a price level where a downward trend tends to pause due to a concentration of demand or buying interest. At this point, traders believe that the asset is undervalued, prompting more purchases, which halts or reverses the decline.

On the other hand, **resistance** is a price level where an uptrend tends to pause or reverse due to selling interest. Traders perceive the asset as overvalued at this point, prompting them to sell, which leads to a price decrease or consolidation.

When the price of an asset breaks through a support or resistance level, it often leads to significant market movements. A **breakout above resistance** may signal a bullish trend, while a **breakdown below support** could indicate a bearish trend. Traders use these levels to make informed decisions on entries, exits, and stop-loss placements, as well as to predict potential price movements.

Understanding how to spot and trade around these levels is critical for successful trading, as they represent psychological price points where market participants make crucial decisions.#USNonFarmPayrollReport #TON #DOGSONBINANCE #BNBChainMemecoins #TelegramCEO