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MonoCoin Signal - Market Alerts - Support and...

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Support and ResistanceSupport and Resistance refer to points, levels, or zones where price has reversedor changed direction in the past. Traders react to these levels and assume the pricewill respond similarly if the price reaches the same level again. As a result, itoften does. In other words, if the price previously reversed at a certain level, thereis an above-average chance it will happen again.Support and resistance levels are widely used in profitable trading strategies asentry and exit points. Buying at support and selling at Resistance with a decentRisk Reward Ratio is a common support and resistance trading strategy.Besides horizontal levels, support and Resistance can have many forms andapplications. Other factors often used to identify support and Resistance are trendlines, moving averages, and Fibonacci levels.Horizontal SupportIf the price declines and then changes direction to the upside, the lowest point isreferred to as support. The price declined to a low enough level to draw buyers'interest, and therefore the price changed direction. If, after some time, the pricereaches the same support level, there is an above-average chance that buyers willstep in again. Therefore, horizontal support levels provide buying opportunities.

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Term
Spring
Professor
Dr. Rabel
Tags
trend lines, Support and resistance, Resistance Alerts

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