🔑 To put it simply and easily:
👉 Resistance is a price level that is higher than the current price and can prevent further price increases. This is considered a price level area strong enough to hinder the increase in the price of the asset.
👉 Support is a price level below the current price that can prevent a further decline. It is also a price level strong enough to support a decline in the asset's price.
If the price continuously encounters a resistance and cannot break it, then that resistance area becomes stronger. Similarly, if the price continuously finds support at the same price area, then that support area becomes stronger.
Support will become resistance when broken and vice versa.
When the price breaks a support, it will become resistance when the price returns in the future. Similarly for resistance when broken.
🔑 SUPPORT - RESISTANCE TRADING METHOD
Wait for reversal signals at support and resistance.
The signal that is most used by traders is the reversal signal through reversal candlestick patterns for the following reasons:
🎯 1. This is a high-quality reversal signal, the most naked. It reflects the price.
🎯 2. The signal appears early, so we do not miss the opportunity.
🎯 3. There is a Stop Loss position right above the candlestick pattern.