The most basic skill that you need to learn as a trader is to know how to spot support and resistance levels. Without this knowledge, you won’t be able to properly analyze the charts.

Support – it is a price level at which interest on the part of the bulls is greater than on the part of the bears. The result of this is that the price stops falling, hits the local lows, or consolidates on this level for a while. After hitting the support level, the price does two things. Either it bounces and starts rising again, or the price breaks the support level falling deeper. When the price breaks the support, it often becomes a resistance level.