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**Understanding Support and Resistance in Trading**

Support and resistance are foundational concepts in technical analysis, essential for traders to understand market trends and make informed decisions. **Support** refers to a price level where a stock or asset tends to find buying interest, preventing it from falling further. It's like a floor that supports the price from dropping too much. Traders often look for support levels to identify potential buying opportunities, anticipating that the price might rebound from this level.

On the other hand, **resistance** is a price level where selling interest emerges, capping the price from rising further. It acts like a ceiling that prevents the price from going higher. When the price approaches a resistance level, traders often consider it a potential point to sell or short the asset, expecting a reversal or pullback.

Both support and resistance levels are identified through historical price data and are often marked by previous highs and lows. These levels are not exact and can be seen as zones where the price action tends to change direction. Understanding and identifying these key levels can significantly enhance a trader's ability to predict market movements and manage risk effectively.#PowellAtJacksonHole #CryptoMarketMoves #LowestCPI2021 #MarketDownturn #SahmRule