RE: Still a long way from Β£5.3027 Jan 2025 14:25
The "science" of resistance levels is not strictly empirical but is rooted in behavioural finance and quantitative studies of price action. Patterns of resistance emerge due to predictable human reactions, historical trends, and algorithmic trading strategies.
By understanding the psychology and mechanics behind resistance, traders can anticipate price movement, set stop-loss orders, or identify breakout opportunities. However, resistance levels are not infallible and should be used alongside other analysis methods for effective decision-making; as you know I use AI analytics, RSI, MACD.