Support and resistance

How to find levels

• Previous swing highs and lows.
• Round numbers such as 100 or 50,000.
• Areas where price has turned several times.
• Moving averages and Fibonacci levels that the market respects.

Role reversal

When price breaks through resistance and holds, that level often becomes support, and a broken support often becomes resistance. The more times a level is tested, the more likely it is to break eventually.

Using levels for risk

Traders place stops just beyond a level rather than on it, since price often pokes through briefly. Take-profit orders often sit just before the next opposing level.

On BRVX

On BRVX, take-profit and stop-loss can be attached to a position, and levels can be drawn on the TradingView chart. For stock perpetuals, BRVX quotes move through weekends, so a level can be tested while the stock exchange is closed.