Ever heard of support and resistance in trading?
If not, no worries! We got you covered.
So, basically, one of the first Technical Analysis concepts that traders learn is that of support and resistance.
Support is simply the price level below the current price. When the price falls to that specific area on the chart, traders and more precisely buyers find it attractive, and they enter the market with buy trades causing the price to rise.
In economic terms, demand is greater than supply.
Similarly, the price level above the current price is known as resistance. When the price rises to that area, sellers find it attractive, and they enter the market with sell trades.
Now this means that supply is greater than demand!
Cool huh?
Well, it's about to get even cooler! In the next series of articles, we’ll be introducing everything you need to know about support and resistance as a beginner in trading!
Let’s go!
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