Support and resistance levels are areas on a price chart where the price of an asset has historically reversed direction. A support level is a price level where buying pressure has been strong enough to prevent the price from falling further.
Conversely, a resistance level is a price level where selling pressure has been strong enough to prevent the price from rising further. Drawing support and resistance levels is a fundamental concept in technical analysis, a critical skill taught in many online stock market courses, including a technical analysis course.
It can help traders make informed decisions and predict future price movements. In this article, we’ll discuss the basics of how to draw support and resistance levels and how they can be used in trading.
There are several methods to identify support and resistance levels as mentioned below:
Once you have identified support and resistance levels, you can use them in trading to make informed decisions. Here are some examples:
Drawing support and resistance levels is an essential skill that every trader should learn, and technical analysis courses are the best way to acquire this knowledge.
By identifying support and resistance levels, traders can determine the trend of an asset, find potential entry and exit points, and manage their risk effectively.
If you’re interested in learning more about technical analysis, consider taking a technical analysis course or an online stock market course by upsurge.club that covers this topic in depth.
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