Support and Resistance – Analysis and Forecast – February 20, 2024
Support occurs when the price stops falling, changes direction, and begins to rise. Support is often considered a “floor” that supports or holds the price.
Resistance is the price level where the price stops rising, changes direction and begins to fall. Resistance is often considered a “ceiling” that prevents prices from rising.
When price breaks a support or resistance level, the price often continues to the next level of support or resistance. Support and resistance levels It’s not always accurate. It is usually an area that covers a small range of prices, so a level can be breached or breached without necessarily being broken. In turn, support/resistance levels help identify points where the price may change direction.
Major vs Minor Resistance/Support
A small resistance or support temporarily delays a price rise or fall within a larger market trend, while a large resistance or support stops the price rise or fall completely and causes the larger market trend to change direction. miner price Resistance/Support It is an artificial horizontal line that represents an area that previously served as price support or resistance but has now transitioned to something else. For example, if the price was previously at a support level, it is now at a resistance level.
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