Support and Resistance
Support and Resistance lines are used by Technical Analysts to determine which direction the
price of an asset will take and to trade accordingly.
A support line is the level on which a falling trend is more likely to bounce back up.
While a resistance line is the level on which a rising trend is more likely to bounce back down.
If a support or a resistance line breaks, the price is expected to keep moving until
it meets another support or resistance line.
In any case, it is unlikely for the price to remain near resistance or support levels,
it is either going to break through the lines, or bounce back inside the channel, which explains
why entering and exiting positions near support and resistance levels is common.
Support and Resistance lines are psychological levels, which means that they do not really exist,
they are rather determined and drawn by traders according to how they believe them to exist.
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