The concepts of support and resistance are some of the most fundamental topics related to the technical analysis of financial markets. They apply to essentially any market, whether that’s stocks, forex, gold, or cryptocurrencies.
While they’re simple concepts to understand, they’re actually quite difficult to master. Identifying them can be entirely subjective, they’ll work differently in changing market conditions, and you’ll need to understand their different types. But above all, you’ll need to study a lot of charts, and this guide will help you get started.
What are support and resistance?
On the most fundamental level, support and resistance are simple concepts. The price finds a level that it’s unable to break through, with this level acting as a barrier of some sort. In the case of support, price finds a “floor,” while in the case of resistance, it finds a “ceiling.”...