Let’s summarize trading support and resistance.
In the previous lessons, you learned about trading support and resistance.
Let’s review what you’ve learned.
When the price moves up and then pulls back, the highest point reached before it pulls back is now resistance.
As the price continues up again, the lowest point reached before it climbs back up is now support.
Support and Resistance are Zones
One thing to remember is that support and resistance levels are usually not exact numbers.
To help you filter out these false breakouts, you should think of support and resistance more as “zones” rather than concrete numbers.
One way to help you find these zones is to plot support and resistance on a line chart rather than a candlestick chart.