What are Support & Resistance Levels?
Support is the price level where a downtrend can be expected to pause due to a concentration of demand. Resistance is where an uptrend pauses due to a concentration of selling interest.
Why They Matter
- Identify trade entries and exits
- Set stop-loss and take-profit zones
- Confirm trend reversals and breakouts
How to Identify Them
- Look for historical bounce points on charts
- Use horizontal lines on swing highs/lows
- Combine with candlestick patterns
Pro Tools & Tips
✔ Use higher timeframes (H4, Daily)
✔ Combine S&R with indicators like RSI or Bollinger Bands
✔ Avoid false breakouts by waiting for candle confirmation