Post
Topic
Board Trading Discussion
Re: The importance of support resistance
by
tbterryboy
on 30/07/2020, 16:18:34 UTC
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
For people who are new to these terms, support is the price level of a coin or an asset where there are many buy orders (high demand) due to which downtrend can pause or slow down. And resistance is a price level of a coin or an asset where there are many sell orders (people trying to sell interest during high prices) due to which uptrend can pause or slow down.

These are some important terms when you are studying charts and about technical analysis. Although not much reliance can be place upon such levels as they might even be fake support or resistance walls created by whales etc.