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### Understanding Support and Resistance in Trading

In trading, support and resistance are critical concepts that help traders make informed decisions. Support refers to a price level where a downward trend tends to pause due to a concentration of demand. As prices fall towards support, buyers become more interested, creating a "floor" that prevents further decline. On the other hand, resistance is the opposite; it’s a price level where an upward trend starts to slow down due to an increasing number of sellers, forming a "ceiling" that prevents the price from rising further.

Identifying these levels is crucial for predicting market movements. When the price approaches a support level, traders often look for buying opportunities, expecting the price to bounce back. Conversely, when the price nears resistance, it’s common to consider selling, anticipating a potential reversal or at least a slowdown in the upward trend.

It's important to note that support and resistance levels aren't absolute; they can be broken. When support is broken, it can turn into resistance, and vice versa. Understanding these dynamics helps traders set better entry and exit points, manage risks, and improve their overall trading strategies.#LowestCPI2021 #BinanceLaunchpoolTON #MarketDownturn #SahmRule #BlackRockETHOptions