$TROY /USDT

Spot and Resistance in Trading

In trading, spot price refers to the current price of a financial asset, such as a stock, commodity, or currency, for immediate delivery or settlement. It reflects the real-time value based on supply and demand in the market. Traders closely monitor the spot price as it helps them make informed decisions about buying or selling an asset.

On the other hand, resistance is a key technical analysis concept that indicates a price level at which an asset has historically struggled to move beyond. It forms a psychological barrier for traders, as the asset’s price tends to bounce off this level. When an asset approaches resistance, sellers may dominate, leading to a price drop. However, if the price breaks above the resistance level, it may indicate a bullish trend, as buyers push the asset to new highs.

Spot prices and resistance levels work together to inform traders of potential entry and exit points. Understanding these concepts allows traders to better predict price movements, manage risk, and optimize their trading strategies. By recognizing resistance levels and tracking spot prices, traders can make more calculated decisions in both short-term and long-term trading opportunities.

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