$WAN /USDT

Spot Price vs. Resistance in Trading

In trading, understanding the relationship between spot price and resistance is crucial for making informed decisions. The spot price refers to the current market price at which an asset, such as a stock, commodity, or currency, can be bought or sold immediately. It's the price of an asset at any given moment, driven by real-time demand and supply dynamics.

On the other hand, resistance represents a price level where an asset struggles to rise above. It's often seen as a psychological barrier where sellers become more active, leading to an increase in supply, which prevents the price from moving higher. Traders monitor resistance levels closely because when an asset approaches this point, it’s likely to either break through and surge higher or bounce back and fall.

Spot price and resistance are important in technical analysis. A break above resistance can signal a bullish trend, whereas a rejection at this level might indicate a bearish outlook. Successful traders use this dynamic to set entry and exit points, helping to maximize gains or minimize losses. Understanding these concepts allows traders to anticipate market movements and make smarter trading decisions.

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