how to identify support and resistance

Identifying support and resistance levels involves analyzing historical price data to pinpoint areas where buying or selling pressure has caused price reversals. Traders typically look for significant price levels where price has bounced off multiple times in the past. Indicating strong support or resistance. Key technical indicators such as trendlines. Moving averages, and pivot points can aid in identifying these levels. Additionally, traders often observe round numbers and psychological levels. Which tend to act as support or resistance. By understanding how to identify support and resistance accurately. Traders can anticipate potential price movements, identify optimal entry and exit points, and manage risk effectively.