Topic: How to identify Support and Resistance? (Read 224 times)
Hello everyone. Thank you for all your suggestions and advice. Now, I can easily getting my funds slowly and slowly. I applied all the feedbacks and advices here in the thread. Hope this will continue, I'm so thankful. Thank you very much.
You usually identify them based on volume, # of bids/sell orders, and historical data. All of these things give us the ability to anticipate the next price action.
S and R are eaily manipulated on this market. especially when there is pump and dump.. better check for volume and set stop loss just in case
You can find this king of explanation everywhere, but if you are stil at this level, better to wait to achieve a better competence before start trading.
Investopedia has some really good tutorials for these basic trading concepts, though they're really intended for stock traders, it more or less stays the same with crypto trading.
Have a look at this page, it also has a pretty good video on it for better understanding of the concepts explained.
https://www.investopedia.com/articles/technical/061801.asp - Support And Resistance Basics by Casey Murphy
Investopedia is your go-to resource for learning about trading in my opinion.
Have a look at this page, it also has a pretty good video on it for better understanding of the concepts explained.
https://www.investopedia.com/articles/technical/061801.asp - Support And Resistance Basics by Casey Murphy
Investopedia is your go-to resource for learning about trading in my opinion.
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You need to check the volume in support and resistance and also check if there are repeated patterns of selling off and consolidating in any given resistance and support areas. Also it is extremely important to see if there is any news impending a break out in either resistance or a crash down from the latest area of support to check to see if maybe new highs or new lows are forming away from previous highs and lows. You will also have to check the charts and do your own research and analysis at this point.
If you want to do it, then you need to have some knowledges about the forex market, about how it works, and specially; how to do technical analysis, there you will understand how to find supports and resistances easily.
Technical analysis in Crypto is a waste, with the massive amount of bots and low marketcap (compared to other commodities and stocks) it's just something which isn't going to work at all. Many people swear by it, but it in the long run it just isn't going to work nor help you in the least.
Don't get involved with the dying system of people who'll tell you that they'll do charting for you for money, they're trying to scam you hard. AVOID AVOID AVOID there are many other marketplace factors which can be used to be educated
Don't get involved with the dying system of people who'll tell you that they'll do charting for you for money, they're trying to scam you hard. AVOID AVOID AVOID there are many other marketplace factors which can be used to be educated
I don't agree with this at all. On the very small cap this might be true but on coins such as ARK, Neo, BTC or any Mid-Large cap i think technical analysis is a great tool. Sure, you shouldn't rely on just technical analysis but it is a great tool for identifying possible buy levels on coins you are interested in. That has been shown tim and again how coins fall to previous levels of support that coincide with fibonacci retracements, 100 day moving average and such. It is not always true but nothing is 100%.
But technical analysis should be a tool in your arsenal when trading cryptos imo.
If you ask these questions, better to invest some time to learn the basis of trading before to invest money!
You can find a lot of good and free material on you tube.
You can find a lot of good and free material on you tube.
You learn how to make technical analysis, you analyse the trend , the charts, the last resistances and you use some stockmarket technics to analyse the next resistance and support. Like the clouds
would be too long to describe Support and Resistance, because it does not always work to get an advantage. you have to learn basic things first about technical analyst like breakout or reversal etc. You can be learning on youtube or blog about Trading
Learn from youtube is good since we can see video and it will make us understand quicker.
If you know friend near you, learn from them also more easier.
Just little explaination, support is where the price is oversold and resistance is where the price is overbought.
Sorry for bad explanation.
Look at the charts for where the price "bounces" back down (resistance) or back up (support) over a period of time. It will also help you identify uptrends (higher lows) or downtrends (lower highs)
When you look at a chart it's very easy to identify supports and resistances, but... my friend, if you have this kind of doubts, better stay away from trading, for now: study, make practice with a demo account, and only when you are ready start to trade.
Every new all time high price created by a crypto asset is turned to be its resistance. Once a coin surpasses that all time high resistance price. That price level becomes a support. Usually support and resistance points are the bouncing points of price to create new support and resistance levels.
I would like to add that resistance is opposite to support since it is the high point or price that bulls can never break. Thus, the word resistance.
Support = The low price that can't get any lower, or gets lower but bounces above that certain level more often.
Resistance = opposite of support.
Resistance = opposite of support.
Technical analysis in Crypto is a waste, with the massive amount of bots and low marketcap (compared to other commodities and stocks) it's just something which isn't going to work at all. Many people swear by it, but it in the long run it just isn't going to work nor help you in the least.
Don't get involved with the dying system of people who'll tell you that they'll do charting for you for money, they're trying to scam you hard. AVOID AVOID AVOID there are many other marketplace factors which can be used to be educated
Don't get involved with the dying system of people who'll tell you that they'll do charting for you for money, they're trying to scam you hard. AVOID AVOID AVOID there are many other marketplace factors which can be used to be educated
Hello traders. I'm new in trading, anyone can explain in easiest way on how to identify Supports and Resistance?
Sorry, im newbie. Thank you.
Sorry, im newbie. Thank you.
Support and resistance tends to be based on price pivots (places where price previously reversed course) and volume concentrations.
The former is generally easy: for example, look for the high before a reversal, and the open of the following candle. These form natural resistances, since top buyers are now trapped above them. The latter ideally involves analysis of the time spent within the trading range set by those resistances. The longer the price ranges, the more volume is trapped in losing positions once price exits the range. Bollinger Bands (and BB % width) can be useful for identifying when the break of a resistance will be particularly meaningful.
Here's some info on S/R basics and how to trade S/R from a forex trader's perspective.
It is farily easy to find supports and resistance. Previous ATH (All time highs) can act as resistance (or supports when falling). Also good supports/resistance are the "moving averages" for 50, 100, 200 day/hour.
As another mentioned, previous periods of consolidation often acts as support since people didn't want to sell below those values. There are many good Youtube videos on this so jsut do a search and watch soem videos. I like "Data Dash" since he often brings a technical aspects into his crypto talks and investments.
As another mentioned, previous periods of consolidation often acts as support since people didn't want to sell below those values. There are many good Youtube videos on this so jsut do a search and watch soem videos. I like "Data Dash" since he often brings a technical aspects into his crypto talks and investments.
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