Thanks PPC -- A valuable post and contribution to those who genuinely are here to gain a Real Understanding of Trading fundamentals. Thanks PPC
Support and resistance levels are crucial in technical trading as they help identify key price points where trends may reverse or consolidate. Traders use these levels to plan entry and exit points, managing risk by anticipating potential market reactions. Recognizing these zones enhances strategic decision-making in forex trading.
Also, such levels are often broken falsely and only then the price reverses, activating many stop-losses behind these levels. Therefore, you need to be prepared for such market traps.