A MUST READ THAT WILL CHANGE YOUR TRADING LIFE!

If you're looking for a thread where you can easily understand the concept of supports, resistances and retest. You're in the right place.

Here's why.

First, let's understand why supports and resistances are created. In every market there are prices that are always the same price being moved from and towards. They're called price floor and price ceiling. These zones hold and prevent the price from going down and going up further. In its simplest form, these zones are created when the overall demand in a specific price at a certain time is met and overall supply are distributed in a specific price at a certain time. Let's take #STMX as an example, you can see this token's price has moved from 0.005059-0.005526 which is considered to be the strong support and retest. The strong support kept the prices from declining even further which you may call as the price floor. As for the retest, it is the level where the price is being reattempted from the support towards the resistance. This is most of the time in between the strong support and strong resistance. However, there are instances when the retest can be slightly above or below the center of them. Both the weak support and strong support kept the prices from falling. These two have also caused the prices to bounce from the bottom towards the retest and test resistance. There can be couple of resistances that are being tested. This is done in order to affirm whether the price would continue to stay in range or breakout. With STMX, the price have been struggling to breakthrough the couple set of test resistances but a good confirmation for this will be if it stays on top of the retest level and the 2 test resistances. It will have higher probability of breaking out. Albeit, as the strong resistance still stands, it is still one of the factors that can lead to unconfirmed price action. Tendency is the strong resistance will reject the price and continue to move in range in between any of the weak or strong support. Until such time the price will break. Therefore, strong support and resistance will have higher probability of holding off the price before they will eventually keep on getting tested and become weaker.

Stay wise, trade cautiously.