To Deal with Resistance and Support | Bitcointalksearch.org

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Quote from: BlackBoss_ on September 28, 2023, 09:13:06 PM

You can not use resistances and supports to identify next price movements and price of Bitcoin, it is impossible.

I use it differently and I consider resistances and supports (strong ones) as very risky areas where market will have big changes so when I see price is fluctuating around strong resistances or strong supports, I will close my current open positions and wait. This way, I can miss chance to get profit but I will not lose any money to the market or will not be liquidated by exchanges.

Market is here and chances will come in future, I don't see why I should take risk to bet on next market movement around resistance or support.

Your deposit will always be safe and will not be liquidated only if you set a stop loss when opening an order. In this case, you can try to open a short position from the resistance level by setting a stop loss above it, and vice versa, open a long position from the support level by setting a stop loss below the support level.

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Quote from: Peanutswar on September 28, 2023, 05:29:26 PM

Trading with the help of support and resistance is ideal this helps to identify what is the next price action and behavior of the market just jeep trading inside the market price of these two it's just still identifying what is the next move just keeping a sideways price movement. But once the market breaks the imaginary lines of those there's change as always happens could be a bounce back or another pump or dump.

You can not use resistances and supports to identify next price movements and price of Bitcoin, it is impossible.

I use it differently and I consider resistances and supports (strong ones) as very risky areas where market will have big changes so when I see price is fluctuating around strong resistances or strong supports, I will close my current open positions and wait. This way, I can miss chance to get profit but I will not lose any money to the market or will not be liquidated by exchanges.

Market is here and chances will come in future, I don't see why I should take risk to bet on next market movement around resistance or support.

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Trading with the help of support and resistance is ideal this helps to identify what is the next price action and behavior of the market just jeep trading inside the market price of these two it's just still identifying what is the next move just keeping a sideways price movement. But once the market breaks the imaginary lines of those there's change as always happens could be a bounce back or another pump or dump.
As a long-term holder seeking for a higher timeframe the test stage of the support and resistance can easily identify we are in crypto market if you go for a short term trading market is so volatile.

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Quote from: RioBlemz on September 19, 2023, 12:54:03 PM

Resistance are barriers and places where you encounter selling pressure which can lead to a reversal or a range before breakout. In the financial market resistance happens when the supply of currency, commodity, instrument, crypto etc. is higher than the demand.

Supports are places where you find buying interest. The inverse of Resistance.

I don't usually trade a bounce off at the Support or Resistance because of fear of price breakout though there are some noticeable candlestick patterns like exhaustion candle which usually indicate a price reversal at the support or Resistance, however from my view point in term of trading with Support and Resistance only I mark and draw the line on higher timeframe thereafter flipped to lower time frame and watchout for a price breakout from the support or Resistance and watch for the price reversal or retouch of the same zone that is Support turned Resistance or Resistance turned Support and waited for a confirmation candlestick that indicates price continuation after the retouch of that zone.

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Quote from: darewaller on September 22, 2023, 08:21:24 AM

Quote from: UchihaSarada on September 19, 2023, 08:19:58 PM

At the same price or in a same price range, resistance and support will change its role with time. At some point of time, a price is a strong resistance but at another point of time, it will become a strong support.

To deal with resistances and supports, you must know it and in action you must not bind yourself with an idea like that resistance is strong and can not be broken out, that support is strong and price will not be dumped under it. If you have such controversial thinking and belief, you will make bad trading positions and if you use leverage, Futures trading, you will be liquidated.

In the cryptocurrency market, anything is possible here so it's important to have a well-detailed plan so that we can prepare for every possibilities that can come. It's also important to have a clear mind so that we can we can do a proper action or we can decide easily. Beliefs such as superstitious can't do anything on here.

There are times that we can get a correct trade but it does not mean that our beliefs are working. In crypto trading, all we need here is knowledge in order for us to perform better. More if we will do those types of trades you mentioned there because all of them are very risky when compared to a normal spot trading.

That is a very difficult one to manage but it is also a true one as well. Most people ignore that fact but the reality is that if we are ready for anything to happen then we are going to be doing fine. I believe that we are going to end up with a good result if we are ready for anything to go well, that is not really unlikely for it to happen and we should be doing something that would make sense.

I hope that people could end up with a good result one way or another but that doesn't mean that we are not going to end up with a profit. Hopefully people would end up with a good result, it shouldn't really be something impossible to get ready for anything, it may take time but if you get ready for long enough, you can arrange something good.

darewaller

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Quote from: UchihaSarada on September 19, 2023, 08:19:58 PM

At the same price or in a same price range, resistance and support will change its role with time. At some point of time, a price is a strong resistance but at another point of time, it will become a strong support.

To deal with resistances and supports, you must know it and in action you must not bind yourself with an idea like that resistance is strong and can not be broken out, that support is strong and price will not be dumped under it. If you have such controversial thinking and belief, you will make bad trading positions and if you use leverage, Futures trading, you will be liquidated.

In the cryptocurrency market, anything is possible here so it's important to have a well-detailed plan so that we can prepare for every possibilities that can come. It's also important to have a clear mind so that we can we can do a proper action or we can decide easily. Beliefs such as superstitious can't do anything on here.

There are times that we can get a correct trade but it does not mean that our beliefs are working. In crypto trading, all we need here is knowledge in order for us to perform better. More if we will do those types of trades you mentioned there because all of them are very risky when compared to a normal spot trading.

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Quote from: kingvirtus09 on September 21, 2023, 11:27:50 PM

When a trader uses an exchange platform to perform trading activity, support and resistance levels are not always precise. Because of this, other traders and scalpers employ tools other than support and resistance.

The other thing they do is combine the tools so they can accurately determine which way the coin's value is moving, am I correct? Then, what is the direction that they believe the price is most likely to take? The traders will start making forecasts at that point, after which they will set a buy or sell order.

Most exchange platform have little deviation from the norm. One good advice is that when you treat support and resistance as a zone it covers for those deviation. Another thing is that you can go to other useful platform like TradingView etc. to do your analysis then come back to your exchange platform and place trade.

In your second sentence you are correct. combine support and resistance with other tools for analysis. It is from your analysis you know the direction the market will most likely take.

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When a trader uses an exchange platform to perform trading activity, support and resistance levels are not always precise. Because of this, other traders and scalpers employ tools other than support and resistance.

The other thing they do is combine the tools so they can accurately determine which way the coin's value is moving, am I correct? Then, what is the direction that they believe the price is most likely to take? The traders will start making forecasts at that point, after which they will set a buy or sell order.

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Quote from: GreatArkansas on September 21, 2023, 07:42:09 PM

Exactly and that's why a lot of traders are having difficult even in just using supports and resistances.
Some are getting stopped from loss hunt just because of wrong placing or identifying of supports and resistances.

They learned like strong supports are safe to entry and strong resistances are risky to hold. They feel betrayed when they hold but strong support is broken and price falls down or when they sell but strong resistance is broken out and price soars.

Quote

For me, it's extremely important to identify and using it even what kind of strategy you are using because it will help you the price level where you can see lot of liquidities and can help you to enter a better trade.

Trading volume is strongest indicator to reflect what is happening on the market. If price rises but trading volume is low, it won't stay for too long because demand is low, supply will always be big and selling pressure just waits to appear.

If price goes up with good growth of trading volume, price can maintain at high level for a while, long enough before trading volume drops and corrections come.

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Quote from: RioBlemz on September 19, 2023, 12:54:03 PM

Resistance are barriers and places where you encounter selling pressure which can lead to a reversal or a range before breakout. In the financial market resistance happens when the supply of currency, commodity, instrument, crypto etc. is higher than the demand.

Supports are places where you find buying interest. The inverse of Resistance.
(....)

Exactly and that's why a lot of traders are having difficult even in just using supports and resistances.
Some are getting stopped from loss hunt just because of wrong placing or identifying of supports and resistances.

For me, it's extremely important to identify and using it even what kind of strategy you are using because it will help you the price level where you can see lot of liquidities and can help you to enter a better trade.

teosanru

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I would surely like to add one more thing here and that is volumes along these critical pivot points. If you add in the volumes data around these price points you can get greater affirmation as to which Support or resistance is really strong and which really is a weaker one. Accordingly you know how many times price may bounce on this. Also if moving average confluence on the same point as support or resistance that can also give greater confidence on this.

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Quote from: Bushdark on September 21, 2023, 01:53:55 PM

Just imagine someone that is trading support and resistance using the loyal time frame. It will never hold because if you look at the higher time, we can find out that the point where we think is support or resistance may never be and it may look like a fake out. There need to check for support and resistance using the higher time frame.

This depends on the type of trader we are. if you are a scalper then you may not be relying on long hours of support and resistance because a short time is important since you want to run out of the market almost as soon you have entered. A short time trader like a scalper and daily trader don't really need a longer time analysis to carry out his orders . Example, if I use 1 to 15 mins time to execute my trade orders then using then I may not needa longer time support and resistance for it.

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There are so many important things including higher highs, higher lows, lower highs, lower lows, daily high, daily low, POI (Point of interest), FVG (Fair value gap), BOS (Break of structure), any session opening and closing, and many others that are needed to be considered before getting into a trade. Resistance and support alone cannot help and be relied upon, because if a resistance is broken, it becomes support for the next session till it gets broken back down and vice versa for support. I hope these terms will help newbies to find about them and learn more to trade better in their trading journey.

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Quote from: Hamza2424 on September 21, 2023, 12:42:52 PM

Quote from: Aisha_jay on September 21, 2023, 11:31:54 AM

Your breakdown of support and resistance levels is spot-on. I appreciate your emphasis on the dynamic nature of trading and the importance of considering external factors. Your insights have already added value to my trading approach, and I eagerly await more of your lessons and discussions. Indeed, trading sounds simple in theory, but as we both know, the practical side often brings unexpected challenges and nuances. It's a continuous learning journey. 👍

Haha, You and me seem like buddy is too much isn't it we rather than you & me. For the rest yes it's a continuous learning journey, today you win you gain experience and learn something, tomorrow may you lose still you'll find something new, In the Bull rally or the Bear trend, In the hyped market sentiments or the consolidating market, there is always something to learn and practice because this domain is like Ocean.

Trading is like an ocean. The deeper you explore, the more new things you discover. So never stop learning, even in the hard times. The trading ocean is beautiful, but it also has its dangers. Stay alert, buddy!

Trading is svery hard and some persons may look at it like it is one sided. Trading has some many things to learn and get yourself aquainted to or else one might miss it all. Trading support and resistance has a lot of things we need to put into consideration and we don't need to keep trading without some certain conditions.

Just imagine someone that is trading support and resistance using the loyal time frame. It will never hold because if you look at the higher time, we can find out that the point where we think is support or resistance may never be and it may look like a fake out. There need to check for support and resistance using the higher time frame.

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Quote from: Aisha_jay on September 21, 2023, 11:31:54 AM

Your breakdown of support and resistance levels is spot-on. I appreciate your emphasis on the dynamic nature of trading and the importance of considering external factors. Your insights have already added value to my trading approach, and I eagerly await more of your lessons and discussions. Indeed, trading sounds simple in theory, but as we both know, the practical side often brings unexpected challenges and nuances. It's a continuous learning journey. 👍

Haha, You and me seem like buddy is too much isn't it we rather than you & me. For the rest yes it's a continuous learning journey, today you win you gain experience and learn something, tomorrow may you lose still you'll find something new, In the Bull rally or the Bear trend, In the hyped market sentiments or the consolidating market, there is always something to learn and practice because this domain is like Ocean.

Trading is like an ocean. The deeper you explore, the more new things you discover. So never stop learning, even in the hard times. The trading ocean is beautiful, but it also has its dangers. Stay alert, buddy!

Franctoshi

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Quote from: RioBlemz on September 19, 2023, 12:54:03 PM

There is no best time to draw support
LESSON 2: The best time frame to draw Resistance or Support Level is the time frame that is suitable to your trading pattern or style.

Generally, the higher times are considered to be the best to hold stronger, you can't compare the weekly and monthly support and resistance zones to a lower time frame.

Quote from: RioBlemz on September 19, 2023, 12:54:03 PM

Thereise no best time to draw support
To know the Strongest Support and Resistance

I present to you two school of thought; The first believes that ones a Resistant or Support has held more than two times that particular zone should be considered as strong.

The Second believes that ones a zone has been tried more than ones there is high possibility for it to give a way.

I tend to agree more with the second point “B”, let's use this scenario for instance, If you take a hammer and hit an object about 2 or 3 and above, does it become stronger or weaker?, the later is the answer it becomes weaker, the often time a price hits a support or resistance zone the weaker and more likely the zone is to be smashed.

Aisha_jay

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Your breakdown of support and resistance levels is spot-on. I appreciate your emphasis on the dynamic nature of trading and the importance of considering external factors. Your insights have already added value to my trading approach, and I eagerly await more of your lessons and discussions. Indeed, trading sounds simple in theory, but as we both know, the practical side often brings unexpected challenges and nuances. It's a continuous learning journey. 👍

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The theory sounds simple but practically a lot more things come up. So try your hands at trading while you get this in your head. I suggest dummy trading to any newbie who might be reading this because that saves up your money and a lot of frustration but gives you good insight and a head start.

A support level would be built where many buyers are present, it is usually lower than the trading price and the resistance level would be built where a lot of sellers are present. As the price drops more difficult to cross support levels are found because people are ready to buy at discounted prices. Visualizing this concept is easier if you have first trading experience, so try it out.

el kaka22

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This is certainly something that is like straight out of some book or something regarding trading. Things are not as black/white like this and you may end up with a different approach on the long term, this is why we need to be a lot more careful about it. I personally believe that the best thing to do in this situation would be making sure that you personally gain some experience while you are doing this, that would actually make some sense and I can understand the issue a lot better that way.

Without gaining any experience, you are going to just end up with something that would not make any sense and you shouldn't do that at all, reading is not the same as living in it, which is why it is going to cause some trouble for a lot of people.

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Quote from: Hamza2424 on September 20, 2023, 05:48:04 AM

That's very much true but I would like to limit its boundary as support and resistance levels for Short time frame traders as 30 min or 15 min really don't provide as much assistance as for the longer time frames 4 hours 12 hours or 1 day.

Indeed. This is why it is useful to use both larger and smaller timeframes. We can use 4h-1d timeframes to determine whether we are in a premium or discount zone and then switch to 15m-4h TF in order to find good entry and exit points.
This can be applied for pretty much all types of trading beside scalping on super low TF with low SLs and high leverages.

Quote from: UchihaSarada on September 19, 2023, 08:19:58 PM

To deal with resistances and supports, you must know it and in action you must not bind yourself with an idea like that resistance is strong and can not be broken out, that support is strong and price will not be dumped under it. If you have such controversial thinking and belief, you will make bad trading positions and if you use leverage, Futures trading, you will be liquidated.

You can use Volume Profile to determine the strength of the level. If it shows a significant amount of orders behind the level then it is obviously strong and it will be safer to put SL behind the massive block of orders.

Topic: To Deal with Resistance and Support (Read 308 times)