A market can go through a draw when the price of an asset breaks a support or resistance with low volume, indicating that there is little demand or supply. This can cause the price to return to its previous level.
Supports and resistances are levels at which the price stops and changes its movement:
Support
The price halts its decline to rise again. It is located below the current price of an instrument.
Resistance
The price stops rising to start falling. It is located above the current price of an instrument.
Traders use moving averages to identify the direction of the trend and key levels of support and resistance.
