Are you ready to learn about support and resistance levels? 🤩

Let's dive in!

Support and resistance levels are like walls that a stock price can't seem to break through. 🧱

Think of it like a bouncy ball hitting a wall - it bounces back each time it hits it. 🎈

For example, if a stock's price is around $50 and it can't seem to break above that price, then that $50 is a resistance level. 📊

💡 Resistance Level = The near-highest price for the stock

Likewise, if a stock's price is around $50 and it can't seem to break below that price, then that $50 is a support level. 💔

💡 Support Level = The near-lowest price for that stock

Support and resistance levels are determined by the price of a stock. 🤔

Basically, if the stock has been trading around a certain price for a while, then that price becomes a support or resistance level. 📝

It's also important to note that support and resistance levels can change over time. 🤗

For example, if a stock's price is around $50 and it breaks above that price, then the new resistance level is now higher. 📈

It's also important to note that support and resistance levels can be used to make trading decisions. 🤑

If a stock's price is around a support level, then it may be a good time to buy the stock. 🟢

On the other hand, if a stock's price is around a resistance level, then it may be a good time to sell the stock. 🔴

Finally, it's important to remember that support and resistance levels are not exact prices 🖐️

So, when trading, it's important to keep an eye on the stock's price action and adjust your trading decisions accordingly. 🔍