Support and resistance are fundamental concepts in technical analysis, identifying key price levels where an asset's price often pauses or reverses. Support...
Support is a price level where buying interest is strong, preventing further price declines. Resistance is where selling pressure is strong, hindering upward price movement.
They are typically identified by connecting previous price highs (resistance) or lows (support). Other tools like trendlines, moving averages, and Fibonacci levels also help.
Support and resistance help traders identify potential entry/exit points, set stop-loss orders, and gauge market sentiment, aiding in risk management and strategic decision-making.
Yes, frequently. Once a resistance level is broken, it can act as new support, and a broken support level can become new resistance. This is known as "role reversal."