The following article on How to Trade with Support and Resistance Levels is the opinion of Optimus Futures.
Support and Resistance levels are concepts that are so fundamental to technical analysis that any lack of understanding in their formations and indications may serve a major impediment to any trader’s technical progress. This article has two general goals: first, it aims to cover the basic concepts surrounding support and resistance; and second, it aims to provide a few tips on how to use support and resistance levels in your trading.
What Are Support and Resistance Levels?
Support and resistance points at which price trends reach a temporary limit, either to reverse or continue in the direction of the original trend. Why do prices reach this limit? Because demand has increased above supply (support),