Lesson, the second

(Support and resistance )

Support and resistance are levels from which the price usually bounces either in an uptrend or in a downtrend

Why does the price bounce

We assume that the market was trending upwards and then reached a resistance zone from this area, the price usually bounces down and wilted due to the presence of momentum for selling

Also, if the price is trending downwards and then reaches a support zone, it bounces upwards due to the presence of buying momentum

* The most important parameters that define support and resistance areas