Importance of key SUPORT and RESISTANCE levels
As you can see from the chart we have used purple lines to show key support and resistance levels ( levels where price has bounced off in either direction ) Even after the market crash of 2008 the price eventually found key support and resistance levels that had been used years before.
The price respects these levels as thousands of traders will also be watching these levels and therefore they will also set orders for these levels hence why the price keeps respecting and bouncing off these levels.
We believe in keeping trading as simple as you can to save confusion and key support and resistance levels are a key factor in our swing trading style.
If you would like more lessons like this or would like to receive our signals then message us as we offer a 2 weeks FREE trial to our VIP group.
The price respects these levels as thousands of traders will also be watching these levels and therefore they will also set orders for these levels hence why the price keeps respecting and bouncing off these levels.
We believe in keeping trading as simple as you can to save confusion and key support and resistance levels are a key factor in our swing trading style.
If you would like more lessons like this or would like to receive our signals then message us as we offer a 2 weeks FREE trial to our VIP group.