Support and resistance

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Support and resistance are important concepts in technical analysis used by traders and investors to identify potential trading opportunities. Support is a level or price point where buyers enter the market and prevent the price from falling further. Resistance, on the other hand, is a level or price point where sellers enter the market and prevent the price from rising further.

Support and resistance levels can also be used to determine entry and exit points. A common strategy is to buy at support levels and sell at resistance levels. However, it is important to note that these levels are not foolproof and the price may break through them.

Support and resistance levels can be identified by analyzing a security's historical price movements and chart patterns.

Support levels can be identified by looking for areas where the price has bounced off the same level multiple times in the past.

Resistance levels can be identified by looking for areas where the price has peaked multiple times in the past.

Recognizing support and resistance levels is an essential part of technical analysis as they can help traders identify potential buying and selling opportunities. It’s the base of technical analysis