SR Price Levels
Support/resistance levels are not meant to be impenetrable barriers which will repel price, offering an easy buy at support or sell at resistance. Support/resistance levels are simply an identifications of the places on the chart which previously displayed a supply/demand imbalance, i.e. areas which remain emotionally in the mind of other traders or hold leftover orders from the original bounce. These levels are watched closely by traders for potential further influence on price movements..
In this lesson, we will learn how these price levels provide structure to our market, and define some of the higher probability spots where a trader should look for trade opportunities.