$RUNE /USDT

Spot and Resistance in Trading

In trading, two essential concepts that traders use to make informed decisions are the "spot" price and "resistance" level.

The spot price refers to the current market price at which an asset, like a stock, commodity, or currency, can be bought or sold immediately. It represents the real-time value, reflecting the market's current perception of the asset's worth. Traders and investors closely monitor the spot price to make quick decisions on entering or exiting positions. It’s a dynamic measure that can fluctuate rapidly based on market conditions, economic data, or other external factors.

Resistance, on the other hand, is a price level where an asset historically struggles to rise above. It’s often seen as a psychological barrier where selling pressure outweighs buying pressure, preventing the price from going higher. Once an asset reaches its resistance level, many traders anticipate a pullback or a pause in the price increase. However, if the price breaks through this level, it can signal strength and lead to a new upward trend.

Understanding these concepts allows traders to identify key moments to enter or exit trades, helping them manage risk and optimize returns. Both the spot price and resistance levels are fundamental in technical analysis, guiding traders toward more strategic decisions.

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