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Support and resistance are key concepts in technical analysis used to identify price levels where an asset tends to stop and reverse its direction. Support is the price level at which buying interest is strong enough to prevent the price from falling further, often seen as a “floor” for the asset. Resistance is the level where selling pressure overcomes buying, preventing the price from rising further, acting as a “ceiling.” Traders use these levels to make informed decisions about entry and exit points, set stop-loss and take-profit orders, and anticipate potential trend reversals. Accurate identification of support and resistance helps in predicting market behavior and improving trading strategies.

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