SUPPORT | RESISTANCE LEVELS
Support and Resistance Levels
Support and resistance are core technical analysis tools for identifying price reversal or pause points. Support is a "floor" where buying halts declines; resistance is a "ceiling" where selling caps rises. These can be zones influenced by history and psychology, applicable to stocks, forex, and crypto. On platforms like A1TradeHub using TradingView, they're often marked as horizontal lines (green for support, red for resistance), as in the chart where price bounces or breaks these levels.
How to Identify Support and Resistance Levels
Historical Price Action: Spot repeated bounces at lows (support) or highs (resistance). In the chart, the green line shows early support.
Pivot Points and Patterns: Look for "V" (support) or inverted "V" (resistance) shapes.
Psychological Levels: Round numbers like $660 often act as barriers.
Trendlines and Moving Averages: Connect highs/lows or use averages for dynamic levels.
Note: Levels can flip roles after breaks, e.g., broken resistance becomes support in the chart's upward breakout.
How to Use Support and Resistance Levels in Trading
Entries/Exits: Buy near support, sell near resistance in ranges; enter breakouts in trends.
Breakouts/Pullbacks: Trade decisive moves beyond levels, then retests for better entries. The chart shows a red resistance breakout leading to gains.
Combine Indicators: Use RSI, MACD, or A1TradeHub tools like VWAP for confirmation.
Risk Management: Set stop-losses below/above levels; demo trade to refine.
These strategies aid timing and profitability, as seen in the chart's interactions.
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