📈 Trading Tip of the Day: Mastering Support and Resistance Levels 📉 Support and resistance are two of the most fundamental concepts in technical analysis. Understanding these levels can help traders make informed decisions and improve their market timing. 🔹 Support Level – This is a price point where an asset tends to stop falling and bounces back up due to increased buying interest. It acts as a “floor” that prevents the price from dropping further. The more times the price touches this level without breaking below, the stronger the support. 🔹 Resistance Level – This is a price point where an asset tends to stop rising and reverses downwards due to increased selling pressure. It acts as a “ceiling” that prevents further upward movement. Just like support, resistance levels become stronger the more they are tested. 📊 How to Use Support & Resistance in Trading: ✅ Look for breakouts—if a price breaks above resistance, it may continue rising. If it breaks below support, it could drop further. ✅ Identify false breakouts—prices sometimes break a level only to return quickly. Always confirm with additional indicators. ✅ Use trendlines—support and resistance can also be dynamic when using moving averages or trend channels. ✅ Combine with other indicators—like RSI or MACD for stronger confirmation before entering trades. 🎯 Pro Tip: The more often a support or resistance level is tested without breaking, the more significant it becomes. Watch for volume spikes near these levels, as they often indicate a strong move. 🚀 Improve your technical analysis skills with NordFX resources: Useful Articles | Trading Tips Strategies | NordFX https://nordfx.com/useful-arti...