What is support and resistance?
Support and resistance levels are horizontal price levels that typically connect price bar highs to other price bar highs or lows to lows, forming horizontal levels on a price chart.
A support or resistance level is formed when a market’s price action reverses and changes direction, leaving behind a peak or trough (swing point) in the market. Support and resistance levels can carve out trading ranges like we see in the chart below and they also can be seen in trending markets as a market retraces and leaves behind swing points.
Price will often respect these support and resistance levels, in other words, they tend to contain price movement, until of course price breaks through them.
In the chart below, we see an example of support and resistance levels containing price within a trading range. A trading range is simply an area of price contained between parallel support and resistance levels like we see below (price oscillates between the support and resistance levels in a trading range).
Note that in the chart below, price eventually broke up and out of the trading range, moving above the resistance level, then when it came back down and tested the old resistance level, it then held price and acted as support…
Next
https://app.binance.com/uni-qr/cart/16571833451874?r=474737841&l=ar&uco=NRld4Vaf6eD5w2LIt7F4kQ&uc=app_square_share_link&us=whatsapp