Resistance and Support Indicator
The Resistance and Support Indicator helps traders identify potential price levels where an asset might reverse direction or consolidate. Support represents a price level where buying interest is strong enough to overcome selling pressure, while resistance indicates a level where selling interest prevails over buying. To use these indicators effectively, traders should look for patterns where the price repeatedly bounces off support or gets rejected at resistance. Additionally, combining these indicators with other tools like trend lines, moving averages, or volume analysis can enhance decision-making. Monitoring price action around these levels can inform entry and exit points for trades, as well as stop-loss placements.
