Introduction One of the most important concepts in technical analysis is support and resistance levels, which play a significant role in traders’ decision-making.
What is a support level?
Support is a level where the price tends to stop or reverse.
What is a resistance level?
Resistance is a level where the price faces selling pressure.
How to identify support and resistance
Reviewing previous highs and lows
Using indicators
Analyzing trading volume
Why these levels are important
Finding entry points
Setting stop loss
Identifying trend breaks
Summary
Support and resistance are among the most important market analysis tools.