"Dynamic" breakthrough of support and resistance!
In an up market, the trend line is a support line; in a down market, the trend line is a resistance line.
The support line refers to a line connected by prices with support. If the price has rebounded many times when it fell to a price level, and the decline was frustrated, I will identify this price level as a position with support. The more support points, the more reliable the support line.
The resistance line refers to a line connected by prices with resistance. If the price has rebounded many times when it rose to a certain price level, and the rise was blocked, I will identify this price level as a position with resistance. The more resistance points, the more reliable the resistance line.
Near the support level, when the price falls, it encounters support and stops falling and stabilizes. The corresponding resistance level is also the pressure encountered when the price rises, thus reversing to a fall.
In many cases, resistance and support levels can be transformed into each other.
When the market turns to a downward trend after completing the upward trend, a short-term highest price will be formed, which can also be called the previous high, and the corresponding one is the previous low.
The previous high is the resistance level of the subsequent upward trend, and the previous low is the support level of the subsequent downward trend. Because the price has been adjusted back at the previous high position, when the price runs near the price again, there will still be resistance, and there is a possibility of another adjustment.
When the price is near the previous high or low, and reverses repeatedly, the more times the market reverses, the stronger the support or resistance effect of the position. Once the market successfully breaks through the resistance level and changes the trend, the original resistance becomes the support of the subsequent market. #以太坊ETF批准预期 #币安HODLer空投BANANA