$ADX /USDT

Spot and resistance are key concepts in trading and technical analysis, helping traders identify potential price movements in financial markets.

Spot price refers to the current market price at which an asset, such as a stock, commodity, or currency, can be bought or sold for immediate settlement. It reflects the most recent buying and selling activity, making it a dynamic indicator of market conditions. Traders use the spot price to assess market value, gauge sentiment, and make quick trading decisions.

Resistance, on the other hand, represents a price level where an asset has historically struggled to move above. It acts as a psychological barrier for traders, often resulting in a high concentration of sell orders at that level. When the price approaches resistance, it tends to stall or reverse as sellers outnumber buyers. However, if the asset breaks through this resistance, it can signal further upward movement, as traders perceive the resistance level as invalidated.

Understanding both spot price and resistance is crucial for developing effective trading strategies. Spot prices help traders make real-time decisions, while resistance levels assist in determining potential exit points or evaluating whether an asset's price will rise or fall beyond a certain point.

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