Topics
Support, resistance and price zones
The areas where price reacts; level tests, breakouts, false breakouts and retests.
What are support and resistance?
Support is a price area where falling price has stopped and turned up before; resistance is an area where rising price has stopped and turned down before.
Testing a level
A level test is when price comes back to a support or resistance zone and reacts there.
Breakouts and the close
A breakout is a candle closing beyond the far edge of a support or resistance zone.
False breakout: the wick versus the close
A false breakout is when price moves beyond a support or resistance zone and returns behind it before the candle closes.
Retests and role reversal: returning to a broken zone
A retest is price returning to a zone after breaking it.
Historical highs and lows: references left by the past
The all-time high (ATH), multi-year highs and lows, and the previous week's or month's high and low are reference areas anyone can see on a chart.
Psychological levels: why round numbers matter
Psychological levels are round numbers such as 100,000 for BTC or 1.00 for some assets.
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