The support and resistance (S&R) are specific price points on a chart expected to attract the maximum amount of either buying or selling. The support price is a price at which one can expect more buyers than sellers. Likewise, the resistance price is a price at which one can expect more sellers than buyers.
Using Support and Resistance After a Breakout
Old Resistance Becomes New Support – If the price breaks above resistance, that resistance level may now act as support.
Old Support Becomes New Resistance – If the price breaks below support, that support level may now act as resistance.
Support and resistance are key concepts in technical analysis. They refer to price levels acting as barriers, guiding market direction. These levels help traders make informed decisions on entry/exit points.
Using Support and Resistance After a Breakout
Old Resistance Becomes New Support – If the price breaks above resistance, that resistance level may now act as support.
Old Support Becomes New Resistance – If the price breaks below support, that support level may now act as resistance.
Support and resistance are key concepts in technical analysis. They refer to price levels acting as barriers, guiding market direction. These levels help traders make informed decisions on entry/exit points.
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