WHAT IS A SUPPORT AND RESISTANCE ZONE?
These are the most basic concepts in technical analysis. And the most important.
SUPPORT: a price level where buyers historically appear and stop the decline. From there, the price "bounces" upward.
RESISTANCE: a price level where sellers historically appear and stop the rise. From there, the price "bounces" downward.
Why do they work?
Because the market’s memory is real. If the price bounced at 42,000 three times, thousands of traders will place orders at that level expecting it to happen again. And that collective expectation often becomes reality.
What happens when they break?
A broken support becomes resistance.
A broken resistance becomes support.
This is called "polarity change," and it’s one of the most reliable signals in technical analysis.
Identifying these zones correctly is the foundation of any solid strategy. $BTC $ETH $BNB
💎 Premium signals + analysis in the VIP Chat of my profile — 15 USDT/month.
These are the most basic concepts in technical analysis. And the most important.
SUPPORT: a price level where buyers historically appear and stop the decline. From there, the price "bounces" upward.
RESISTANCE: a price level where sellers historically appear and stop the rise. From there, the price "bounces" downward.
Why do they work?
Because the market’s memory is real. If the price bounced at 42,000 three times, thousands of traders will place orders at that level expecting it to happen again. And that collective expectation often becomes reality.
What happens when they break?
A broken support becomes resistance.
A broken resistance becomes support.
This is called "polarity change," and it’s one of the most reliable signals in technical analysis.
Identifying these zones correctly is the foundation of any solid strategy. $BTC $ETH $BNB
💎 Premium signals + analysis in the VIP Chat of my profile — 15 USDT/month.