Explanation of Support and Resistance
What is support?

Support is a price or a price zone where, when the price reaches it, many buyers usually appear. This reduces further decline or may stop it, and sometimes the price rebounds upward.

It’s like a floor under the price.

Simple example

If the ALLO coin is falling:

0.35

0.33

0.30

And each time it gets close to 0.30 it goes back up, then most likely: 0.30 = support

Because buyers entered at this level more than once.


What is resistance?

Resistance is a price or a price zone where, when the price reaches it, many sellers usually appear. This makes the upward move stop or weaken, and sometimes the price falls back down.

It’s like a ceiling above the price.

Simple example

If the coin is rising:

0.30

0.33

0.35

And each time it reaches 0.36 and then drops, most likely: 0.36 = resistance

Because sellers show up clearly there.


Imagine it like this

Support = floor

Resistance = ceiling

The price moves between the floor and the ceiling.

If the floor breaks, it may drop more.
If the ceiling breaks, it may rise more.
#باقي #الشرح In the next post
$ALLO