UNDERSTANDING SUPPORT AND RESISTANCE AS A BEGINNER (Part 6)
The Moving average support and resistance:
Many indicators may also provide support or resistance when they interact with the price.
One of the most straightforward examples of this are moving averages. As a moving average acts as support or resistance for the price, many traders use it as a barometer for the overall health of the market. Moving averages may also be useful when trying to spot trend reversals or pivot points.
The first image is showing 200-week moving average acting as support for the price of Bitcoin.
Fibonacci support and resistance:
Levels outlined by the Fibonacci retracement tool may also act as support and resistance.
In the screenshot example below, the 61.8% Fibonacci level acts as support multiple times, while the 23.6% level acts as resistance.
The second image on this post shows Fibonacci levels acting as both support and resistance for the price of Bitcoin.
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