Day 23 – What is Support and Resistance? (Chart Basics)
📉 Price doesn’t move randomly — it respects key levels.
Support and Resistance are the most important concepts in technical analysis.
🟢 Support
A price level where the coin usually stops falling and bounces upward.
It acts like a “floor”.
Example:
If BTC repeatedly bounces from $30,000, then $30,000 is support.
🔴 Resistance
A price level where the coin usually stops rising and falls downward.
It acts like a “ceiling”.
Example:
If BTC struggles to break $32,000 many times, then $32,000 is resistance.
Why these levels matter:
• Traders use support/resistance to:
• Enter trades at better prices
• Set stop-loss and take-profit
• Predict possible reversals
Beginner Tip:
The more times a level is tested, the stronger it becomes.
Key Takeaway:
👉 Support = buying zone | Resistance = selling pressure zone.
Save this post — support and resistance are the foundation of chart trading.
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