Support and resistance are among the most important tools every trader needs. Understanding them helps you know the areas where the price behavior may change.

🟢 Support: An area where the price faces buying pressure, and may bounce back upward from it.

🔴 Resistance: An area where the price faces selling pressure, and may retreat from it.

How do we identify support and resistance?

Look for:

Zones where the price has bounced several times.

Clear highs and lows.

Levels where strong trading volume occurred.

The areas where support turns into resistance—or vice versa.

🎯 Simple example:

If the price reaches a support area and bounces from it several times, that gives it greater importance.

If support is broken with a clear close and high trading volume, support may turn into resistance.

⚠️ Important note: Don’t enter the trade just because the price reaches support or resistance. Wait for confirmation from price action and volume, and manage risk.

Next lesson: How do we use candlesticks to confirm an entry? 🕯️📈

#Trading #TechnicalAnalysis #Crypto #SupportResistanceFlip