Price Movement (Resistance And Support)
Prices are always in a trend. And you should always follow the main trend. The Trend Is Your Friend.
When it comes to follow the trend, we must understand where resistance and support are.
Resistance means when the price can't go higher, it resists. Lots of sell pressure can be met there. It works as a roof.
Support is where all the buyers are and won't let price go lower. It supports as a floor.
Once they are broken, they usually invert their function: instead of resistance, it turns into support.
And vice versa, once the price breaks support, it turns into resistance.
This is also known as Supply and Demand, the place where people are expecting price to turn around.
That is the Depth of Market, we will talk about it in the next video.