Charting 101 - $AI
People & Blogs
Introduction
As I have been following AI for about two weeks now, let's recap Friday's price action quickly. At 4 AM, there was a move to the upside, reaching into a liquidity area. Market accumulated buy side liquidity before moving downward. A bearish imbalance was identified as a resistance level. The price then touched a support level, rebounded, encountered a recently formed imbalance, rejected lower levels, broke the support, and settled at a final support level.
Keyword
- AI
- Price Action
- Liquidity
- Resistance
- Support Level
- Imbalance
- Market Movement
FAQ
- What is AI in the context of charting? AI stands for Artificial Intelligence and its use in charting involves analyzing patterns, trends, and data to make predictions and decisions in the financial markets.
- How are liquidity areas identified on a chart? Liquidity areas on a chart can be identified based on levels where a significant amount of buying or selling activity has occurred, often resulting in price movements.
- What is the significance of support and resistance levels in charting? Support levels indicate where the price tends to stop falling and bounce back up, while resistance levels signal where the price tends to stop rising and pull back down. These levels help traders make informed decisions about potential entry and exit points.