Comment by Sku Tufik on October 19, 2021 at 5:59am

There are three types of support/resistance levels in trading practice:

Historical (reversal).
Psychological.
Calculated (mathematical).

Historical (reversal) support/resistance levels are formed on local price minimums/maximums. As a rule the line is drawn through several such points. The level shows the boundary value, from which the price bounced (rebound) many times.
Psychological levels are sometimes called levels, which are tied to "round" values of quotes. Their appearance is caused by the psychology of market participants, who are inclined to fix profit or loss on "convenient" figures. As a rule they are less significant than historical ones, but if they coincide, they can intensify the latter.
The calculated support/resistance levels have nothing to do with the real price movement on the market. As a rule they are used as a forecast for definition of movement or correction purposes.

Also, in order to prevent unpleasant declines and avoid risks central pivot range trading strategies are used https://finstrategy.in/how-to-use-central-pivotal-range-on-trading-... . In such cases the minimum of support is needed as well.

Comment by borinas33 on October 19, 2021 at 5:58pm

Psychology is a scary business. Sometimes it can be difficult to retain traders, but it is possible

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