Support and Resistance
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Support and resistance levels are key concepts in technical analysis that help traders identify potential entry and exit points. Support represents a price level where a stock tends to find buying interest, preventing it from falling further. Conversely, resistance is a level where selling pressure emerges, preventing prices from rising. Understanding how these levels work is crucial for predicting price reversals and setting realistic targets. Traders often rely on historical price patterns, volume behavior, and psychological zones to determine support and resistance. These levels are not always exact; they can appear as zones or bands. Price tends to bounce between these levels, forming trends and ranges. Breakouts above resistance or below support can signal the beginning of a new trend. This module will teach you how to draw support and resistance lines, validate them using volume, and apply them across different timeframes. Practical chart examples and TradingView demonstrations are included to strengthen your understanding.