Understand the support like the floor and the price like a ball.
118
Contrary to popular belief, the more a price touches support, the WEAKER it becomes.
I'm seeing lots of charts lately that make this mistake.
Here's a short thread why this is the case: Price bounces at support because there are buyers willing to pay at that price. Due to what's called "order absorption", each following support touch will usually have less and less buyers, eventually causing a shortage of buyers at a given price. This is when price falls
An easy way to think of it: Imagine a ball bouncing off the floor... With every bounce, it gets weaker and eventually stops bouncing. Once it stops bouncing, the ball is no longer in motion, AKA the price will break through support
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.