$ARDR /USDT
**Understanding Support and Resistance in Trading**
In trading, support and resistance are critical concepts that help traders analyze price movements and make informed decisions. **Support** refers to a price level where an asset tends to stop falling and reverse direction because demand starts to outstrip supply. Essentially, itâs a price âfloorâ that prevents the market from falling further. Traders often place buy orders at support levels, anticipating that prices will rise.
On the other hand, **resistance** is a price level where an asset struggles to go higher due to an overwhelming amount of selling pressure. It acts like a âceilingâ that restricts further upward movement. Traders tend to place sell orders at resistance levels, predicting that prices will fall.
Identifying these levels is crucial for setting entry and exit points in trades. When the price breaks through a support or resistance level, it can signal a potential trend reversal or continuation. Traders use various tools like moving averages, trendlines, and Fibonacci retracements to help spot these levels more accurately.
Incorporating support and resistance in trading strategies allows for better risk management and increases the likelihood of entering profitable trades. Understanding these concepts can significantly enhance one's trading decisions.#USNonFarmPayrollReport
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