$OG /USDT

In trading, understanding support and resistance is crucial for making informed decisions. Support refers to the price level at which an asset tends to stop falling due to increased buying interest. It acts as a “floor” that prevents further declines. When the price approaches this level, traders expect it to bounce back, making it a key area for potential buying opportunities.

Resistance, on the other hand, is the price level where selling pressure increases, preventing the price from rising further. It acts as a “ceiling” that stops upward movement. Traders often sell their positions at resistance points, anticipating a reversal.

The interaction between support and resistance plays a vital role in price movement. When the price breaks through support, it can indicate a bearish trend, while breaking resistance might signal a bullish trend. These levels can flip roles; for example, broken resistance can turn into new support and vice versa.

Identifying these zones allows traders to set entry, exit, and stop-loss points more effectively. By combining support and resistance with other technical indicators, traders gain a more comprehensive view of potential market moves, making these concepts foundational in any trading strategy.

#BinanceLaunchpoolHMSTR #NeiroOnBinance #BinanceLaunchpoolCATI #FTXSolanaRedemption #GrayscaleXRPTrust