Topic: The importance of support resistance (Read 832 times)
Since most crypto projects have been around quite a while not there is substantial information available on establishing support and resistance levels. Trading off of these levels can help you book some profits and identify when you could look to reenter or dollar cost average into a position. I would recommend using it especially if you are a frequent trader.
In trading crypto currency there are that do work for trader X that will not work for trader B and if you believe it then you need not to make it as if without one following this method one will not be successful in trading crypto currency. Fundamental issue can make support and resistance in relevant, so what ever strategies that works please maintain it.
Of course studying support and resistance is very important, because it is part of the basis of technical analysis.
If we can determine the support and resistance levels, it will be easier to determine the buying / selling price of coins.
After all, mastering support and resistance can predict market prices, thereby reducing the risk of trading too.
Yes, it will reduce the risk in trading. In my opinion, this is a basic technique that we must understand, with fluctuating market conditions making it easier to determine support and resistance. Although basically Crypto cannot be predicted with certainty, but with the shape on the chart between support and resistance it makes it easier for a trader to understand the market. If we can determine the support and resistance levels, it will be easier to determine the buying / selling price of coins.
After all, mastering support and resistance can predict market prices, thereby reducing the risk of trading too.
Support and resistance are important for trading. But you can think of these as indicators of the rest of the technical analysis, because you can't rely on them 100%. Markets can often be volatile for a variety of reasons, including news, upcoming events, and so on. So then your strategy will not work. This will require you to increase your trading knowledge.
Because if you always trade depending on a strategy, you can suddenly fall into a big danger. For this, not only reliance on support and resistance, but also fundamental analysis becomes important in some cases. Market makers know which way ordinary traders can trade, so they rekt to ordinary traders at that time.
Because if you always trade depending on a strategy, you can suddenly fall into a big danger. For this, not only reliance on support and resistance, but also fundamental analysis becomes important in some cases. Market makers know which way ordinary traders can trade, so they rekt to ordinary traders at that time.
Both Support and resistances are broken but many times they are respected. So how to play with them ?
Well, the best thing you can do is to always buy at the support and sell at the resistance. Sometimes both will break, so always keep the stop loss above the resistance and below the support.
As for me, this aspect is extremely important for a trader. Situations in the process of work can be different, and you need to be prepared for them.
Support and resistance level is indicative of different market situations and behavior. I have found out that support and resistance work too well all things been equal! Trading along the signal that support and resistance gives can help you to avoid pitfall or not missing opportunity for getting in a position for break out.
...I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
What is important in these levels is that a stop loss is placed behind the resistance level at short and below the support level at long. But this does not guarantee that the order placed by you will be protected by the level, because often after an impulse movement, when your position is closed with a stop loss, the price returns to the previous level.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
I agree with you, support on the chart becomes the reference for future market movements and resistance provides support for the downward chart. Actually this is a simple technique for traders, the most important thing is for each individual to continue to educate about trading skills so as not to get caught up in determining when support occurs and when resistance occurs. I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
Actually fully testing their support and resistance might lead you to habit batted .because of not analizing the difference aspects of the chart like looking at their volume. See if there is a sizzling selling or buying happening who is cool easily determined if there is a high change to to break in that supports of resistance I i r g new traders to learn to draw support resistance with great care and observe the market to see the results for yourself.
^ A fundamentals seem so realistic, support resistance binds the infographic analysis and faith towards the flow of chart, However, it is outlawed with the volatility and I can say that the chances of relying on it are by half, the better way for me in trading is to ride with the expert, should, of course, must know intimately before riding to a Trade. Trial and Risk, but eventually gradual selling and trading is the new trend. Nevertheless, we can consider this stop-loss as useful but tool but no one will give accurate answers of predictions.
Volatility is really a pain in the ask, even you have a good understanding with support and resistance
once volatility hits you up, the directions will be change along the way.
You have to keep moving forward and ride and risk but learn from time to time, You'll be able to make
something good if you are prepared enough to acknowledge changes.
Support resistance as basis when you are trying to position your entries/exits, but you have to understand
that there are things that you need to consider.
Support and resistance both work as a backbone for trading and if spot correctly, this can help you guess the moves with utmost accuracy. These two are the security of the trade you enter and can help you set targets a bit more accurately even when a new event like reaching ATL is there and you don't get what should be used as a support in order to enter the trade at the right time.
^ A fundamentals seem so realistic, support resistance binds the infographic analysis and faith towards the flow of chart, However, it is outlawed with the volatility and I can say that the chances of relying on it are by half, the better way for me in trading is to ride with the expert, should, of course, must know intimately before riding to a Trade. Trial and Risk, but eventually gradual selling and trading is the new trend. Nevertheless, we can consider this stop-loss as useful but tool but no one will give accurate answers of predictions.
It is really sad only very few people are making use of support resistance levels in this crypto space as per the recent statistics study by major crypto magazine. Because people are mostly believing in to manipulations like pump and dump so that they could make more profits in the relatively short period of time rather than looking for technical things. In my opinion support and resistance levels are integral part of technical analysis and we should never ignore it.
I see the point of what you are trying to say but I think most of people don't really care about support resistance levels coz that's IMAGINARY for them. Most traders don't actually sees it coz they always think that the price will move no matter the price range is, it is different from those who sees and knows how the market works technically. But in my opinion, price resistance only exists if the price is stable at it on a certain period of time, like a year or more, that could be seen as price support where you can based your trades. Pivot point analysis must be a known technical analysis which is purely based on support and resistance levels. Moreover all technical analysis are based on support and resistance levels because we need to buy at support levels and need to sell resistance levels. It means all technical analysis strategies/tools are simply based on support and resistance levels but they are not explicitly showing that to us.
With such high market volatility it is really risky to base trades on technical analysis, coz the market is pretty unpredictable, your analysis may be wrong or right. Whenever I'm trading I always depend it on the speculation that I've read, news from the project and instinct. Technical analysis might help but not a lot for me. 
Support and Resistance levels can be naturally a point of interest when devising a trading strategy, but you have to bear in mind that many other market participants are also
looking at the exact same charts that you have access to, and you need to come up with a strategy to outwit or at least elude most of them if you want to be profitable in trading.
Expanding on this line of thought, you need to also bear in mind that some players will deliberately hunt stops around support / resistance levels to accumulate a strong position when launching a sizable trade...
looking at the exact same charts that you have access to, and you need to come up with a strategy to outwit or at least elude most of them if you want to be profitable in trading.
Expanding on this line of thought, you need to also bear in mind that some players will deliberately hunt stops around support / resistance levels to accumulate a strong position when launching a sizable trade...
I see a lot of people are saying support and resistance aren't enough to make consistent, profitable trades. It's true. However, support and resistance were not meant to be a standalone tool. They are to be used alongside other technical analysis tools like indicators, other drawing tools like fib retracement / ext. Personally, I use either S/R lines or Fibonanci tools for drawing areas of value / zones where I like to place my entries or exits and then I use in with either Bollinger bands or RSI. Most times, using only Support and Resistance won't cut it, there are other things aids price movements like fundamental analysis.
Bottom line, support and resistance are too useful tools that shouldn't be neglected for those shinny indicators and to get the best out of it. Also, it's good have to use them along with other tools in our trading toolbox.
Bottom line, support and resistance are too useful tools that shouldn't be neglected for those shinny indicators and to get the best out of it. Also, it's good have to use them along with other tools in our trading toolbox.
Support and resistance are important for trading. But you can think of these as indicators of the rest of the technical analysis, because you can't rely on them 100%. Markets can often be volatile for a variety of reasons, including news, upcoming events, and so on. So then your strategy will not work. This will require you to increase your trading knowledge.
Because if you always trade depending on a strategy, you can suddenly fall into a big danger. For this, not only reliance on support and resistance, but also fundamental analysis becomes important in some cases. Market makers know which way ordinary traders can trade, so they rekt to ordinary traders at that time.
Because if you always trade depending on a strategy, you can suddenly fall into a big danger. For this, not only reliance on support and resistance, but also fundamental analysis becomes important in some cases. Market makers know which way ordinary traders can trade, so they rekt to ordinary traders at that time.
It is really sad only very few people are making use of support resistance levels in this crypto space as per the recent statistics study by major crypto magazine. Because people are mostly believing in to manipulations like pump and dump so that they could make more profits in the relatively short period of time rather than looking for technical things. In my opinion support and resistance levels are integral part of technical analysis and we should never ignore it.
Pivot point analysis must be a known technical analysis which is purely based on support and resistance levels. Moreover all technical analysis are based on support and resistance levels because we need to buy at support levels and need to sell resistance levels. It means all technical analysis strategies/tools are simply based on support and resistance levels but they are not explicitly showing that to us.
Pivot point analysis must be a known technical analysis which is purely based on support and resistance levels. Moreover all technical analysis are based on support and resistance levels because we need to buy at support levels and need to sell resistance levels. It means all technical analysis strategies/tools are simply based on support and resistance levels but they are not explicitly showing that to us.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
I think it all depends on the traders, sometimes the information you’re getting, no matter how you might be thinking you’re getting that information, it’s probably going to be late, so it’s up to you on what you want to do.I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
There are people who are trading without making use of support and resistance. Just like some people will always tell you that if you can’t trade smart, then it’s best that you just forget about anything that has to do with trading. People can trade without support and resistance, but before you start trading, it’s good that you understand everything developed strategy.
Of course studying support and resistance is very important, because it is part of the basis of technical analysis.
If we can determine the support and resistance levels, it will be easier to determine the buying / selling price of coins.
After all, mastering support and resistance can predict market prices, thereby reducing the risk of trading too.
If we can determine the support and resistance levels, it will be easier to determine the buying / selling price of coins.
After all, mastering support and resistance can predict market prices, thereby reducing the risk of trading too.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
My trading strategy is based on price action on support or resistance and support lines basically after drawing those lines I always wait for price breaking those lines and subsequently retouching it i.e resistance turning support vice versa I lay emphasis on price reaction using rejection candles after touching those lines and I used those lines also to determine where my stop loss will be placed subsequently aiming a take profit in the next line while considering my reward to risk ratio this lines are important and must be incorporated into any trading strategy.I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
rejections and this is where trading makes it more harder where you cant guess on what would be the next price action would happen.Overall using up these technicals are pretty common.
I cant imagine for someone not to able to make use of these since this had been always the basis or tool that can make you spot out on where price do bounce nor breaks.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
My trading strategy is based on price action on support or resistance and support lines basically after drawing those lines I always wait for price breaking those lines and subsequently retouching it i.e resistance turning support vice versa I lay emphasis on price reaction using rejection candles after touching those lines and I used those lines also to determine where my stop loss will be placed subsequently aiming a take profit in the next line while considering my reward to risk ratio this lines are important and must be incorporated into any trading strategy. I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
There are so many things that you need to consider before you could trade that at one point I think it is close to impossible to check everything before you do a trade, how does the day trader check everything before they trade it? You have to do TA first, all those indicators all those bollinger bands and macd and so forth, all the support and resistance points, all the volume and liquidity stuff, all the stop loss stuff and buy and sell orders.
Basically we are talking about a million things you should do before you trade, it is a cool thing to know because it would allow you to profit a lot faster and a lot more commonly but it is definitely still a very hard thing to do. Support and resistance is a part of it, not the whole of it but definitely is an important piece.
Basically we are talking about a million things you should do before you trade, it is a cool thing to know because it would allow you to profit a lot faster and a lot more commonly but it is definitely still a very hard thing to do. Support and resistance is a part of it, not the whole of it but definitely is an important piece.
Obviously Support and Resistance are important and I consider it to be among the most important factors for crypto speculation.
It's a good basis when anticipating the next market movements, placing your orders that based from this information gives you better
chances to gained from the market.
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I have been doing trading for quite a few years and I have experienced many times that the Support and Resistance play a major role in deriving the next crypto trend.
Once you have a good familiarization with this trading tool, it will lessen the chance of losing your investment.
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I have seen bull runs when bitcoin broke the resistance and also I have seen the bearish trend when bitcoin kept on breaking the support.
Even today I believe the next bull run will be when bitcoin breaks the resistance around $15k.
Even today I believe the next bull run will be when bitcoin breaks the resistance around $15k.
Though it's not that accurate due to possible sideways, but the chance is much higher if there's no manipulations that will take place.
Did you all know that the foundation of technical analysis is the support and resistance, if you just know that concept and for sure you can able to make gains in the market. A lot of traders are keep making mistakes because they think that support and resistance are not important, like what I said it is the foundation of the technical analysis. A lot of trading strategies are have requirement which is you should able to understand the support and resistance. You can able to know where the price may go just by mastering the plotting of support and resistance.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
Support and Resistance is important for anyone who is trading. If you’re still a newbie in trading, making use of Support and Resistance is going to be helpful to you in lots of ways. I have seen some analysts who make use of resistance and support to show people when they should sell and when they should buy. If you’re a new trader you can make use of the support level to know when you’re going to buy, or if you’re being short you can take profit at the support level, and take profit at resistance when you’re being long. I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
such decisions but i do agree that support and resistance is a default tool that you must use.
You can able to spot out on what levels do the price had been rejected and the possible point on where it can bump its head or might able to break it out.If you do know to spot
these levels then you can make your own entry and exit points.
This might be sounds too basic but it is one mainly needed.
Took the first few minutes to go through the replies on the thread, totally worth it. Here's my thoughts:
Like other technical trading tools, support and resistance have their usefulness and shouldn't be neglected. At the same time, there are other tools with their use cases. I take support and resistance as guidelines for zones where I want to place either my entry orders, stop loss orders or even take profit orders. It often acts as an "area of value" for me. And regardless of whether or not it holds or breaks, It's still worth keeping an eye and taking note of it as these zones are often retested from time to time.
At the end of the day, It all boils down to which tool a trader feels comfortable using but having even the basics on support and resistance goes a long way to help. That said, I use support and resistance with other tools like Fib retracement and Bollinger bands to better time my entries.
Like other technical trading tools, support and resistance have their usefulness and shouldn't be neglected. At the same time, there are other tools with their use cases. I take support and resistance as guidelines for zones where I want to place either my entry orders, stop loss orders or even take profit orders. It often acts as an "area of value" for me. And regardless of whether or not it holds or breaks, It's still worth keeping an eye and taking note of it as these zones are often retested from time to time.
At the end of the day, It all boils down to which tool a trader feels comfortable using but having even the basics on support and resistance goes a long way to help. That said, I use support and resistance with other tools like Fib retracement and Bollinger bands to better time my entries.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
Support and Resistance is important for anyone who is trading. If you’re still a newbie in trading, making use of Support and Resistance is going to be helpful to you in lots of ways. I have seen some analysts who make use of resistance and support to show people when they should sell and when they should buy. If you’re a new trader you can make use of the support level to know when you’re going to buy, or if you’re being short you can take profit at the support level, and take profit at resistance when you’re being long. I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
Obviously Support and Resistance are important and I consider it to be among the most important factors for crypto speculation.
I have been doing trading for quite a few years and I have experienced many times that the Support and Resistance play a major role in deriving the next crypto trend. I have seen bull runs when bitcoin broke the resistance and also I have seen the bearish trend when bitcoin kept on breaking the support.
Even today I believe the next bull run will be when bitcoin breaks the resistance around $15k.
I have been doing trading for quite a few years and I have experienced many times that the Support and Resistance play a major role in deriving the next crypto trend. I have seen bull runs when bitcoin broke the resistance and also I have seen the bearish trend when bitcoin kept on breaking the support.
Even today I believe the next bull run will be when bitcoin breaks the resistance around $15k.
So98nn, I dont know how much time you have spent with technical analysis, but it is quite normal that there is high number of support – resistance lines, which depends on which time scale you are charting. If you open long term historical chart you will probably find only few long term SR levels
What you can do with this information is to gather as much stop loss and buy orders and sell orders as you can on a bot or if the website allows it on the website itself and just sell and buy accordingly but do not forget that these support lines and resistance lines can be broken very easily whenever people want.
Remember last year we moved from 3k levels to 14k level in a month without a care about the resistance levels, or just a few months ago we dropped from 9k to 4k once again without caring about any support levels. These levels are important on day trading and making small profits like 1-3% or whatever but in reality there is no way you could look at them and make a huge amount of profit, there is no money to be made from just checking these, you have to consider other stuff as well.
Remember last year we moved from 3k levels to 14k level in a month without a care about the resistance levels, or just a few months ago we dropped from 9k to 4k once again without caring about any support levels. These levels are important on day trading and making small profits like 1-3% or whatever but in reality there is no way you could look at them and make a huge amount of profit, there is no money to be made from just checking these, you have to consider other stuff as well.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
I don’t know for people saying you should ignore this.I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
For me, I think this is very important, especially when you’re a new trader that is still struggling to achieve in this volatile cryptocurrency market.
You should study everything that you’re mean to know about Support and Resistance, and what this does is that it will help you as a trader to be able to identify where there are strong supply and demand. I don’t know if you have ever checked some technical analysis by experts, like on Cointelegraph? They will always identify the areas of support and resistance. It’s going to be helpful if you learn it.
You would really be like a blind man in that case where you do trade without realizing or knowing on what are the support and resistances? Of course its important and even people do talk
about technical tools arent that useful but majority had been using this when they do first see into their charts.I'll surely bet on this one which this is the most common that would be plot out first
when making analysis.I dont know why there are people whom do consider for this to be useless, yet having no S&R will not really give you the idea or picture out on the current or recent supply and demand.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
I don’t know for people saying you should ignore this.I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
For me, I think this is very important, especially when you’re a new trader that is still struggling to achieve in this volatile cryptocurrency market.
You should study everything that you’re mean to know about Support and Resistance, and what this does is that it will help you as a trader to be able to identify where there are strong supply and demand. I don’t know if you have ever checked some technical analysis by experts, like on Cointelegraph? They will always identify the areas of support and resistance. It’s going to be helpful if you learn it.
The very first thing I tell people to learn is the support levels and resistance levels and why you should ignore them most of the time.
Definitely they look like they are very important in grand scheme of things and when we are moving slowly they look important because prices move up and down according to those levels.
However do not forget that bitcoin moved from $9k to $3.6k in 5 hours in march 15th because of covid depression.
Do you know how many support levels there are between $9k to $3.6k and how much bitcoins required to sell before it reaches those levels?
I can tell you that it s a lot, it is insanely a lot, BILLIONS of dollars. That is why do not worry about support and resistance levels like they could stop something but also do not disregard them neither because they are what makes bitcoin move during calm days like today for example.
Indeed. No reliance can be placed on support and resistance levels as the demand can increase or decrease by greater percentages rendering those walls useless. Moreover, as the market is highly volatile, unstable and manipulated by whales and higher entities, support and resistance walls get taken down in an instance.Definitely they look like they are very important in grand scheme of things and when we are moving slowly they look important because prices move up and down according to those levels.
However do not forget that bitcoin moved from $9k to $3.6k in 5 hours in march 15th because of covid depression.
Do you know how many support levels there are between $9k to $3.6k and how much bitcoins required to sell before it reaches those levels?
I can tell you that it s a lot, it is insanely a lot, BILLIONS of dollars. That is why do not worry about support and resistance levels like they could stop something but also do not disregard them neither because they are what makes bitcoin move during calm days like today for example.
When the market shows organic movement free from hype and other manipulation, having knowledge about these levels could prove very helpful in day trading or even when you are investing for long term. They play vital roles in forming the chart and technical analysis and prediction the movement pattern.
the support is the line where there is a buy wall if you consider it a buy wall which the price usually bounce in a certain time frame. whether it be daily chart, 4 hour or 1 hour time frame, it has different support and resistance line.
traders i knew treat support line as the price where they get to buy back but will also depend to the other indicator they use whether it agrees to where the support is. support and resistance line are important but can also be unimportant when considering the volatility of the crypto market and if there is a bear market.
It depends on what kind of trader you are which means that you would need to find biases on each timeframe before making a plotting on said support or resistance.When we do talk about importance then of course this is one of the most important things in trading on where we do consider first the possible entry price or level on where the movement would be heading.We can presume that there would be always a bounceback but we
know that price can breakout without a problem which would trigger out our stoplosses if you have put some, if not then negative will surely goes deeper.
the support is the line where there is a buy wall if you consider it a buy wall which the price usually bounce in a certain time frame. whether it be daily chart, 4 hour or 1 hour time frame, it has different support and resistance line.
traders i knew treat support line as the price where they get to buy back but will also depend to the other indicator they use whether it agrees to where the support is. support and resistance line are important but can also be unimportant when considering the volatility of the crypto market and if there is a bear market.
In the crypto world though things are messy at any given point. I mean the support which has been analysed in the initial phases by using any technical analysis doesn't last longer. That is why crypto trading and it's assets are very volatile. With the current scenario we can only rely on the real time data and news surrounding the crypto world. They fluctuate the coins drastically and thus making no use of support resistance.
I am not sure how many of you will agree upon this but it is the case now a days. If you start calculating then you will find there are not just one two or three but many resistance levels that will come out eventually. So be careful while targeting these levels.
I am not sure how many of you will agree upon this but it is the case now a days. If you start calculating then you will find there are not just one two or three but many resistance levels that will come out eventually. So be careful while targeting these levels.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
For people who are new to these terms, support is the price level of a coin or an asset where there are many buy orders (high demand) due to which downtrend can pause or slow down. And resistance is a price level of a coin or an asset where there are many sell orders (people trying to sell interest during high prices) due to which uptrend can pause or slow down.I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
These are some important terms when you are studying charts and about technical analysis. Although not much reliance can be place upon such levels as they might even be fake support or resistance walls created by whales etc.
Even complete technical analysis may not be really helpful for a long term trader and highly risky to implement in the day trading as well but we have no other choice other than following indicators which gives some idea but it may not be entirely true all the time so risk management is a must factor when we are going to day trade.
Well, when you use these type of information and trade accordingly, it doesn't guarantee you earning something but at least it makes sure that you do not lose too much. You could pick that up and you could say that using a stop loss based on the support levels or using buy orders depending on resistance all could lead to something that would help you make a bit more money.
Like I said it is not a guaranteed way of making money but at least it does help you out a bit and in trading world you have to use everything that helps you out, every small detail that would help you is very crucially important thing and that is why I believe support and resistance should be taken advantage of and should never be left alone when trading and not used, if you do that you are leaving a lot of advantages on the table.
Like I said it is not a guaranteed way of making money but at least it does help you out a bit and in trading world you have to use everything that helps you out, every small detail that would help you is very crucially important thing and that is why I believe support and resistance should be taken advantage of and should never be left alone when trading and not used, if you do that you are leaving a lot of advantages on the table.
The importance of support resistance is usually placed on the price of market currencies. Everyone supports it when the price of a currency goes up. On the other hand, the results of the situation during the resistance situation monitoring try to improve the situation below the price of the uploaded currency. The analysis, support and reporting of Vedic currency technology to customers is the basis of a project whose value is closed and vice versa. In the case of technology analysis, their direction is changing.
There is a lot of help with the use of this combination because this gives you a good market signal what are the coming movements on the market so you can be aware when is the down and uptrend to make a good investment.
Always alert about the things that happen in the market with the use of that you can win a lot of money and avoid too many losses.
- Resistance - this is the highest market peak of the market coin sometimes when the coin forcing itself too much to reach and best the resistance there is a higher possibility that the price of the coin drops. But if the price of the coin makes a good movement and rapidly increasing there is a chance to make more price increase.
- Support - this is the time when there is no too much market volatile we called this sometimes as a stable time of the coin. Still take care of it because this may drop the market price.
Always alert about the things that happen in the market with the use of that you can win a lot of money and avoid too many losses.
The support and resistance are the foundation of the technical analysis, for those new traders who want to learn technical analysis; their focus must bet learning on how to plot and identify support and resistance. It is important because the prices are usually move inside the support and resistance. If the price surpass the resistance it called breakout, but if the price goes down support; it is called breakdown. If we master to use it then for sure we can earn consistently in trading.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
Despite we acknowledge the roles of support and resistance levels, nothing is guaranteed and safe. Analysts have different technical analysis of their own regarding the support and resistance levels. We cannot predict the cryptocurrency market right now, as we have to invest and trade at our own risk.
As long we are equipped with risk management and diversification, our disappointment level would be a bit less when things turn red. It’s better to trade on our own, and use the basic principle of buying low and selling high.
The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
Market will always obey support and resistance levels because they are the backbone of market and based on support and resistance levels only market finds its fluctuations. What are all the technical analysis which are focusing on spotting support and resistance levels then those analysis could give us accurate entry and exit signals. Interestingly what all we need is finding where to enter and where to exit and support and resistance analysis provides that exactly but we are all looking for some other things with the help of different strategies by ignoring these.I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
Moreover with the help of support and resistance based trading we can go for shorting way of trading even with spot markets with the help of stable coins. All you need is, selling your BTC for stablecoins at resistance levels and then buying back BTCs at the support levels.
In my opinion, support and resistance levels work best in the short term. In the long run, there are many risks.
How? You can find out long term support and resistance levels as well. Just the different time-frame will not alter any of risks in support/resistance analysis. There are multiple analysis are available for spotting support and resistance levels and when more than one analysis say about same price zone then that could be interpreted as strong levels. Strong levels are known for working even in long time frame. 
In my opinion, support and resistance levels work best in the short term. In the long run, there are many risks.
As the example above was shown above, under certain circumstances, the tool can give a damn about all the support lines and collapse in 5 hours, as Bitcoin did in March.
But in the case of scalping, these levels play the role of excellent navigators in predicting prices in the short term.
As the example above was shown above, under certain circumstances, the tool can give a damn about all the support lines and collapse in 5 hours, as Bitcoin did in March.
But in the case of scalping, these levels play the role of excellent navigators in predicting prices in the short term.
Support and resistances are the main tools which do most traders make use specially to those who are fan of doing technical stuffs and you would really need up these kind of indicators because you would need to
see on where prices do bounce back and do break.You can plot on trend lines together with it so that you can determine on where it could possibly go in terms of price movement.
When you are experienced and skill enough you can even able to plot out into your mind and able to identify support and resistance without the need of plotting it.
When we do talk about importance then this one is relevant and helpful.
In my opinion, support and resistance levels work best in the short term. In the long run, there are many risks.
As the example above was shown above, under certain circumstances, the tool can give a damn about all the support lines and collapse in 5 hours, as Bitcoin did in March.
But in the case of scalping, these levels play the role of excellent navigators in predicting prices in the short term.
As the example above was shown above, under certain circumstances, the tool can give a damn about all the support lines and collapse in 5 hours, as Bitcoin did in March.
But in the case of scalping, these levels play the role of excellent navigators in predicting prices in the short term.
if we can determine the price of support and resistance, we will be able to estimate when the coins will pump or dump.
If you are able to identify support and resistance levels then you can enter/exit in profitable way but you cannot do anything with pump or dump as those manipulations are being performed by whales who do not bother support and resistance things but technical people do adjust them by having resistance-1/mid-point-1/resistance-2/mid-point-2 etc.For example, by April/May 2019 BTC prices rallied from $3800 levels to $13,500 levels without bothering any resistance levels in-between (currently we are bothering about $10k levels as a biggest one but it was broken very easily at that time). So, if you have followed your support resiatnce thing by that time then you might have booked profits at resistance-1 and someone might had not watched markets and had not put any target order, somehow got opportunity to book above $12,000 levels.
This is the reason, people do call trading is all about "probability".
If you are a trader and do not understand support and resistance, I make sure you often experience losses.
Not necessarily. Traders may set target without realizing about resistance levels and when more people do follow same kind of strategy, that target level becomes a strong resistance level. Same applies for support zone. When more people do buy out of their strategy, price will not fall further hence we do identify that prices as support levels. Support and resistance while is easy to use it's also one of the most proven tools that actually works most of the time in all markets including crypto market, but in lower volume/liquidity pairs you have to be more careful because all indicators as well as support and resistance can be misleading an inaccurate sometimes, I only see RSI and support/resistance as indicators that works in most trades and I barely use any other indicator.
With low volume inside crypto pairs chance that manipulation will take place, knowing the
behavior of exchange and the whales,
It's not impossible that everything can be fake, movements can be influenced by bag holders
who loves playing the market.
It's best to work with your knowledge before you invest your money.
One key to successful trading is to master knowledge about support and resistance. Because if we can determine the price of support
and resistance, we will be able to estimate when the coins will pump or dump. Therefore I strongly agree with support and resistance
very important in trading. If you are a trader and do not understand support and resistance, I make sure you often experience losses.
and resistance, we will be able to estimate when the coins will pump or dump. Therefore I strongly agree with support and resistance
very important in trading. If you are a trader and do not understand support and resistance, I make sure you often experience losses.
Support and resistance while is easy to use it's also one of the most proven tools that actually works most of the time in all markets including crypto market, but in lower volume/liquidity pairs you have to be more careful because all indicators as well as support and resistance can be misleading an inaccurate sometimes, I only see RSI and support/resistance as indicators that works in most trades and I barely use any other indicator.
It's true. It's super important that you learn these things. Support and resistance are like your safety net in trading. Without it. It's like driving blindfolded. Indicators or patterns are not always accurate. So if it goes sideways, You have that safety net that will limit how much you will lose on the trade.
Trading at support resistance level is very effective as it can make the stop loss much smaller. Trading at support resistance levels can be done with much less risk. The best strategy in my opinion is to trade with support resistance and candlestick pattern.
absolutely right and I will add a little, which is about the RSI, if you combine support and resistance with the RSI indicator you will be able to determine the exact buy and sell, hopefully it will help you 
The basic knowledge to trade is indeed support and resistance. We never be separate in our daily trade in another strategy so the first thing to do when someone has intention to trade is they must know about support and resistence. Because with support and resistence we will know where we should in to the market and to choose a profit that we want. I believe when you start trading and you just know support and resistence you won't lose a lot of money in your daily trading but you have a chance to gain a lot of profit in. And so far, I just use two strategy when I trade i.e support and resistance and fibbonaci retracement.
Trading at support resistance level is very effective as it can make the stop loss much smaller. Trading at support resistance levels can be done with much less risk. The best strategy in my opinion is to trade with support resistance and candlestick pattern.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
The Bitcoin market price is formed by aggregating buy/sell order data across most of the big cryptocurrency exchange platforms.Explaining the market with terms like "support" and "resistance" seems like a great oversimplification.The market isn't some living creature.
I think that the so called "support" and "resistance" are just time frames,when there's balance between the buy and sell orders on most crypto exchange platforms.If the buy orders increase in quantity above the sell orders,the price starts increasing.If the sell orders are more than the buy orders,the price is going down.
Complete balance is almost impossible to be maintained for a long period of time,so the "buy/sell order" balance breaks and the price goes up or down.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
Yeah exactly, support and resistances forms the basis of the technical analysis some people call it old days strategy of trading but i agree it is still valid but it is better to use other confirmation signals alongside just support and resistance that will dramatically increase your winning ratio. Also if one is trading solely on support resistance levels then he must be vigilant regarding breakouts and breakdowns and use tight stop loss range to avoid big losses. I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
We can use support and resistance in so many ways and can be used as the combination of many indicators which is important as well. Even this simple indicators can make your trading more successful than using nothing so don’t forget the basic. We actually don’t need to use so many indicators just to prove the trend, look at the simple S&P then you can see the whole picture clearly.
Yeah, having TA's, charts, signals, and etc...never have that huge effect in trading instead it makes us be bothered and undecided but if we focus on the market event by simply seeing into the volume and market support level will make a way to have a good decision. In fact, the market will remain unpredictable, thus, anything will happen later will certainly not be seen into TA's or whatever it is (the ups and downtrend) but seeing it through the market resistance level will something it helps a lot. With so much volatility analysis will just give less than a percent of what you are trying to find in the market, every day it is a different scenario in the market so might as well you study hard the last night before trading today. The support and resistance serves me a reminder that, there are people who is holding firm and then there short guys who is enjoying on the surface of volatility which makes the market unstable at all which is natural for a crypto market.
You can consider support and resistance points as vital things when doing trading and I would agree that it is vital importance during technical analysis but like I mentioned do not think that they are by all be all numbers, they are just small numbers that does affect a bit but they are still quite breachable and movable very easily when a major movement happens. It is your personal decision to use whatever one when you want but also be ready to ignore them when you should as well.Just because there is a huge support for example doesn't mean that it will not go down neither, or just because there is a big resistance doesn't mean that it will be hard to go beyond neither. These are important numbers when dealing on day trading but becomes useless when we are talking about long term investment to bitcoin.
Those are just indicators just like any other Technical Analysis indicator. You can't relay on them 100% though the support and resistance levels can guide you on your entry and exit points.
That is, you cant rely but it will help you to find the nearest x amount of your speculation in market price. This support and resistance level will help you to forecast nearest to close prediction through the help of technical analysis.In that case, I agree that the market price was remained unpredictable but you cant simply guess on it, it seems it's awkward to have baseless speculation without a help of any indicator.
Personally I have tried to make use of pivot point analysis and have concluded it is very efficient on finding intraday buying and selling levels. Pivot point analysis is all about identifying support and resistance levels based on yesterday's high, low and close along with today's open. Through pivot point analysis, I have wondered on seeing markets do make reversals at support and resistance levels at uncountable times.
With so much volatility analysis will just give less than a percent of what you are trying to find in the market, every day it is a different scenario in the market so might as well you study hard the last night before trading today. The support and resistance serves me a reminder that, there are people who is holding firm and then there short guys who is enjoying on the surface of volatility which makes the market unstable at all which is natural for a crypto market. If you are able to identify support and resistance levels through any of kind of technical analysis, then you can easily ride on market directions.
The resistance can break any time, it is not a solid foundation of the market. Still the speculation is the core and technical analysis is not ideal for the market situation right now.
in my opinion is very important, support and resistance make traders know where to buy and sell, let alone combine it with other indicators which will certainly be more accurate
Not only support points, but also resistance points are one of the most important factors to follow when trading. While performing technical analysis, we should act knowing that the most important levels to be considered are the support and resistance points, and we should carefully analyze the distance or proximity of these points according to the price. I would also like to point out that the analysis made using only indicators has a very high margin of error, but compared to these, the analyzes made using only support and resistance points have less margin of error. It should also be noted that support and resistance prices are not sufficient in some cases, especially in the crypto markets, and there is the possibility of misleading investors who make analysis.
Support and resistance levels, this is practically the basics of technical analysis again and it is these indicators that all trades use without exception. If you do not use the support and resistance levels, then this will practically be the work of an investor who relies only on fate. But if an investor wants to predict at least a little the indicators of his profit, then the level of support will show him the possibility of increasing prices, and the level of resistance the possibility of falling prices.
Those are just indicators just like any other Technical Analysis indicator. You can't relay on them 100% though the support and resistance levels can guide you on your entry and exit points.
If the support and resistance levels were 100% reliable then we would be having any breakout. In trade, remember there is someone there who trusted a support or resistance level and a breakout got them rekt.
If the support and resistance levels were 100% reliable then we would be having any breakout. In trade, remember there is someone there who trusted a support or resistance level and a breakout got them rekt.
There's no such thing as 100% reliable in crypto market. There are a lot of factors involve and considering all of them is quite tough. That's true, those who will trust this support level may end up getting rekt. We can't be sure of things in this volatile market.
As a trader you must use the indicators that you think can help you on your trading decision and the support and resistance can be a very big help even on a simple trading plan. If you’re a trader the indicators that you’ve learned is already on your heart, you just avoid using it since you know better now and of course the trading strategies will depend on you now.
TAs will help you in the assessment but if you are trading specific coin, most of the time TAs don't work because it depends mostly on what is happening about the project.
As a trader you must use the indicators that you think can help you on your trading decision and the support and resistance can be a very big help even on a simple trading plan. If you’re a trader the indicators that you’ve learned is already on your heart, you just avoid using it since you know better now and of course the trading strategies will depend on you now.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
It's as important at having your entry and exit strategy. But the problem is that new traders doesn't want to learn some basic trading strategies, they just want to go there and trade and then complain when they loss money in cryptospace.I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
Here is a good read about the subject:
https://www.investopedia.com/trading/support-and-resistance-basics/
Yes, I agree that they are not 100%, everything in trading is not a guarantee, but at least knowing the basic and then you can learn as you go along.
Those are just indicators just like any other Technical Analysis indicator. You can't relay on them 100% though the support and resistance levels can guide you on your entry and exit points.
If the support and resistance levels were 100% reliable then we would be having any breakout. In trade, remember there is someone there who trusted a support or resistance level and a breakout got them rekt.
If the support and resistance levels were 100% reliable then we would be having any breakout. In trade, remember there is someone there who trusted a support or resistance level and a breakout got them rekt.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
Whose trader would be the one to forget support and resistances? since this would be the main or primary tool that would be used once you do some charting.For experienced ones you can even I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
imaginably able to draw out these lines with just staring up those candles but this would base of on how long you've been dealing with technicals thats why some traders wont really necessarily plot out
these lines but they are already being plotted and already being presumed out. These indicators are one of the most important and a common one because you can make analysis whether you do exit
or you do enter into the market.
Support and resistances are just some indicators that cannot be used alone since we all have seen it that they are often breaking out of or breaking down of since this market is volatile making it hard just to rely on looking at a crypto asset purely on their supports and resistances. Actually fully trusting their supports and resistances might lead you to have a bad trade because of not analyzing the different aspects of the chart like looking at their volume if their is a massive selling or buying happening which could easily determine if there is a high chance of breaking that support of resistance. For me basically looking at their support and resistance can just be treated as a guide on when it is safe to buy or not as well as sell or not.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
How can people analyse the market and make the decisions without knowing the support level? People who trade based on technical analysis will keep that in their mind but its not always good thing because the resistance level can be broken at any point. We can minimize huge loss using stop loss feature but not much benefits other than this. I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
Personally I have tried to make use of pivot point analysis and have concluded it is very efficient on finding intraday buying and selling levels. Pivot point analysis is all about identifying support and resistance levels based on yesterday's high, low and close along with today's open. Through pivot point analysis, I have wondered on seeing markets do make reversals at support and resistance levels at uncountable times.
If you are able to identify support and resistance levels through any of kind of technical analysis, then you can easily ride on market directions.
RSI is another tool to identify overbought/oversold regions; whereas overbought/oversold regions can be interpreted as resistance/support levels respectively. When you are using more than one tool to spot support and resistance levels then you can be sure about market to obey those levels more accurately. Combining more than one strategy/tools is always recommended which got no exceptions for support/resistance based trading as well.
If you are able to identify support and resistance levels through any of kind of technical analysis, then you can easily ride on market directions.
RSI is another tool to identify overbought/oversold regions; whereas overbought/oversold regions can be interpreted as resistance/support levels respectively. When you are using more than one tool to spot support and resistance levels then you can be sure about market to obey those levels more accurately. Combining more than one strategy/tools is always recommended which got no exceptions for support/resistance based trading as well.
In my personal opinion I see supports and resistances as areas of opportunity, for me the only ceiling is $ 20K, if there are areas of usable opportunities they are executed according to the plan, I think that supports and resistances vary according to the temporality that is done trading. A scalping support or resistance is not the same as in the long term, the areas of opportunity vary.
Support resistance is safe to trade but there are many risks involved initially
I think that the risk involved in it is because people rely on just trading breakouts. Breakouts usually come from when support or resistance fall or break. But this is risky as breakouts can be moment and revise soon.All trades are risky but for me, this is much better if you will have your stop-loss placed after you enter your trade and also the risk: reward ratio is important.
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.. but nobody can really predict the market.
I tend to agree with this that we can't really predict the market, as long as there is unknown about in the future and certain speculations may occur. .. but nobody can really predict the market.
To have closer gues in predicting price, fundamental and technical analysis is very needed. This support and resistance levels are important matters when it comes to a time where the forces of supply and demand meet, then you will have your TA upon analyzing the chart pattern.
This support resistance is very useful when you plotting the chart and found where is resistance level and support level.
The very first thing I tell people to learn is the support levels and resistance levels and why you should ignore them most of the time.
Definitely they look like they are very important in grand scheme of things and when we are moving slowly they look important because prices move up and down according to those levels.
However do not forget that bitcoin moved from $9k to $3.6k in 5 hours in march 15th because of covid depression.
Do you know how many support levels there are between $9k to $3.6k and how much bitcoins required to sell before it reaches those levels?
I can tell you that it s a lot, it is insanely a lot, BILLIONS of dollars. That is why do not worry about support and resistance levels like they could stop something but also do not disregard them neither because they are what makes bitcoin move during calm days like today for example.
Definitely they look like they are very important in grand scheme of things and when we are moving slowly they look important because prices move up and down according to those levels.
However do not forget that bitcoin moved from $9k to $3.6k in 5 hours in march 15th because of covid depression.
Do you know how many support levels there are between $9k to $3.6k and how much bitcoins required to sell before it reaches those levels?
I can tell you that it s a lot, it is insanely a lot, BILLIONS of dollars. That is why do not worry about support and resistance levels like they could stop something but also do not disregard them neither because they are what makes bitcoin move during calm days like today for example.
I agree with you. These support levels are based on technical analysis, but nobody can really predict the market.
You need to set your own limits when trading (buying/selling), but the big question always is: how to determine these limits?
For some cryptos I have set up a sell order when I have a profit of 25%. Taking profit is always a good idea!
The very first thing I tell people to learn is the support levels and resistance levels and why you should ignore them most of the time.
Definitely they look like they are very important in grand scheme of things and when we are moving slowly they look important because prices move up and down according to those levels.
However do not forget that bitcoin moved from $9k to $3.6k in 5 hours in march 15th because of covid depression.
Do you know how many support levels there are between $9k to $3.6k and how much bitcoins required to sell before it reaches those levels?
I can tell you that it s a lot, it is insanely a lot, BILLIONS of dollars. That is why do not worry about support and resistance levels like they could stop something but also do not disregard them neither because they are what makes bitcoin move during calm days like today for example.
Definitely they look like they are very important in grand scheme of things and when we are moving slowly they look important because prices move up and down according to those levels.
However do not forget that bitcoin moved from $9k to $3.6k in 5 hours in march 15th because of covid depression.
Do you know how many support levels there are between $9k to $3.6k and how much bitcoins required to sell before it reaches those levels?
I can tell you that it s a lot, it is insanely a lot, BILLIONS of dollars. That is why do not worry about support and resistance levels like they could stop something but also do not disregard them neither because they are what makes bitcoin move during calm days like today for example.
It is very safe to trade with support resistance but when we learn to trade we forget it after learning it or we are not interested in using it. But the use of support and resistance is very important in trading. Many of us run after strategy and forget or ignore the use of support resistance. The market always respects support and resistance or breaks out and moves in an up or downtrend.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
I urge new trades to learn to draw support resistance with great care and observe the market to see the results for yourself.
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