AI in identifying support and resistance levels Okay, let's talk about how AI can help with finding "support and resistance levels" in the world of trading. It might sound a little complicated, but we can break it down! Imagine you're bouncing a ball. Sometimes it hits the ground and bounces back up (that's like "support"). Other times, it hits a ceiling and bounces back down (that's like "resistance"). In the world of trading, these "support and resistance levels" are like those floors and ceilings for the prices of things like stocks. Here's how AI can help find them: * Looking at Lots of Information: * AI can quickly look at tons of past price data, way more than a person could. It can see patterns that might be hard for us to spot. * Think of it like an AI detective that can see clues hidden in mountains of numbers. * Finding Patterns: * AI uses special tricks (called algorithms) to find patterns in the way prices move. It can figure out where prices tend to bounce or stop. * This is like the AI learning from past events, to predict where those events might happen again. * Real-Time Help: * The market changes super fast. AI can keep watching and updating those support and resistance levels as things happen. * So, instead of having to watch all the time, the AI can alert you to important changes. * Making it Easier: * Some tools use AI to draw those support and resistance lines right on charts, so you can see them easily. Essentially, AI is like a super-powered tool that helps traders make better decisions by finding those important price levels. Here are a few key points to remember: * "Support" is like a floor where prices tend to stop falling. * "Resistance" is like a ceiling where prices tend to stop rising. * AI can analyze huge amounts of data to find these levels. I hope that helps!