oussama94
05-28-2017, 00:57
Resistance levels are the opposite of support
levels, as they can act as a ‘ceiling’ to rallies.
If the price rises to a strong resistance level,
chances are that buyers might be reluctant to
buy at these high prices, whereas sellers are
more comfortable to sell as they consider their
entry price a good one. This dynamic tends to
drive the price down, or at least keep it from
moving higher. By knowing the resistance levels
you can recognise possible selling opportunities
The reason support and resistance levels exist
is because markets remember prices where
buyers or sellers tend to cluster. For example,
if EUR/USD rises to 1.5000 and then reverses
lower, the next time it reaches that price, the
market will remember what happened last time,
and buyers and sellers will begin positioning
themselves for another reversal both knowing
what happened last time at 1.5000.
levels, as they can act as a ‘ceiling’ to rallies.
If the price rises to a strong resistance level,
chances are that buyers might be reluctant to
buy at these high prices, whereas sellers are
more comfortable to sell as they consider their
entry price a good one. This dynamic tends to
drive the price down, or at least keep it from
moving higher. By knowing the resistance levels
you can recognise possible selling opportunities
The reason support and resistance levels exist
is because markets remember prices where
buyers or sellers tend to cluster. For example,
if EUR/USD rises to 1.5000 and then reverses
lower, the next time it reaches that price, the
market will remember what happened last time,
and buyers and sellers will begin positioning
themselves for another reversal both knowing
what happened last time at 1.5000.