Hi, welcome to the world of trading. I am sure you will have a lot of fun doing it and getting the freedom you want and quitting your current job /s.
Support is just like a floor, when you jump and it holds you despite gravity on the planet. Similarly, in trading, support is a zone or an area where the price will come and bounce back up without going down further.
The Opposite of that is resistance, just like your room ceiling. You can't jump and break over it, that's how it's in trading. Price reaches a certain point and drops back slowly or suddenly downwards and that area is the resistance zone.
A complete guide for you to learn more about these topics: https://www.investopedia.com/trading/support-and-resistance-basics/
Also, the price needs to be on that zone multiple time for it to be declared a support or resistance zone, not once. Good Luck!
Topic: what is the support zone ? - page 2. (Read 262 times)
The level where buying pressure is there and usually takes a huge volume of selling to break through, that ends up being a support level and these are usually the prices where investors have bought the coin previously. Historically there are many support levels which people have been placing buy orders at and keep them strong.
Think of it as a big bunch of buy orders to negate most of the sell orders such that the price does not drop below that. Opposite to this will be the resistance level which you can now make out on your own.
The use of these levels is to plan your buying point and whether you should play it safe and buy at even lower to maximize profits on the opposite side when you sell.
That is the support zone and there is resistance and both of them really do not matter when we are talking about bitcoin, does it? Those are what we are talking about but to be fair during bear markets support points do not matter and we crash below them fairly easily, and during bull runs the resistance doesn't matter and we go above them anytime we want as well. That is why we shouldn't really be worried about these lines anymore since in this market it doesn't really matter and we shouldn't be worrying about them at all.Think of it as a big bunch of buy orders to negate most of the sell orders such that the price does not drop below that. Opposite to this will be the resistance level which you can now make out on your own.
The use of these levels is to plan your buying point and whether you should play it safe and buy at even lower to maximize profits on the opposite side when you sell.
I hope that the best thing we can do right now would be having some sort of understanding that if the market wants to move a direction, it will move that direction ignoring everything else.
The resistance zone usually becomes the support zone in the bull market. For example, the $25200 price in the daily chart was once a resistance zone that price hardly can't break since February but it finally breaks above resistance in March.
In the next few weeks, if the correction happens that $25,200 could be the support zone which is where you might wanna buy more BTC to gain in the next spike.
I believe that you have learnt enough about support and resistance zone from the reputed members replies in your post.
Here is the simplified answer to your question:
Support zone is the price point where investors are interested in purchasing the coin in bulk and they place orders worth millions of dollars in that price point, sometimes selling pressure can break that support zone. Resistance zone is the price point where most sellers are interested in selling the coin in bulk worth of millions of dollars and make some profit from their long positions, that zone can also break with higher buying pressure.
The traders who have advanced knowledge of reading charts, and they have technical knowledge of various useful indicators can determine those support and resistance points. It's not that hard to have that skill all you need is to give proper time to trading, and learn from your mistakes.
Here is the simplified answer to your question:
Support zone is the price point where investors are interested in purchasing the coin in bulk and they place orders worth millions of dollars in that price point, sometimes selling pressure can break that support zone. Resistance zone is the price point where most sellers are interested in selling the coin in bulk worth of millions of dollars and make some profit from their long positions, that zone can also break with higher buying pressure.
The traders who have advanced knowledge of reading charts, and they have technical knowledge of various useful indicators can determine those support and resistance points. It's not that hard to have that skill all you need is to give proper time to trading, and learn from your mistakes.
Support and resistance zones can flip each other at different times. When a market turns from bullish to bearish, a support zone will change to be a new resistance zone after it is broken. In contrast, when a market turns from bearish to bullish and a resistance zone is broken, price breaks out from that resistance zone, this zone will change to be a new support zone.
Bitcoin Support and Resistance for dummies
Yes, that's right, this is the main point in terms of support and resistance for the market scheme, this does look complicated and I suggest beginners should look for sources that are easier to understand, you can search through existing social media and find the best mentor in your opinion.Bitcoin Support and Resistance for dummies
When trading myself, I always use the support and resistance strategy as a reference point and start it when the price starts to weaken and there is an indication of a reversal from the candlestick, so there I will do a little scalping technique.
Actually I am very new on trading, And while browsing the forum, I saw that most of the time people are talking about the support zone, can someone please explain to me what the support zone is, I would be a little more happy if you explain it through a chart. how can I identify the support zone ?
Support and resistance zones can flip each other at different times. When a market turns from bullish to bearish, a support zone will change to be a new resistance zone after it is broken. In contrast, when a market turns from bearish to bullish and a resistance zone is broken, price breaks out from that resistance zone, this zone will change to be a new support zone.Bitcoin Support and Resistance for dummies
The struggling explanation I don't think you need to focus on it might be wrong or correct as support and Resistance regions are never wrong or right they are strong and weak. Let me explain my words What is a support line or region the point which has greater Buying liquidity "Means that on that particular point, there are huge buying Limit orders and sentiments" Such points where we check greater buying limit orders and sentiments call it to support if the volume o that point is huge then we call it Strong Support level if the volume is low we call it weak support level and In reflection to you can call Resistance. Our prediction for the accuracy of the Support and Resistance level can be wrong or right in our analysis but Support and resistance levels are known as Strong or Weak.
If still curious how and why or more just quote me I will try to cover up related things to the query. Good day
Actually I am very new on trading, And while browsing the forum, I saw that most of the time people are talking about the support zone, can someone please explain to me what the support zone is, I would be a little more happy if you explain it through a chart. how can I identify the support zone ?
Support zone or level is usually the price range when the price of a coin you are trading usually struggles to break through downwards. In most cases, when the price reaches the support level, it bounces off upwards and trades around that level.However, when the selling pressure is too much, it can break downwards.
You can use a few tools and indicators to determine Resistance and support levels such as the Fibonacci Retracement, Trend lines, Fixed Range Volume Profile etc
Open up and account in tradingview. You will learn a lot about technical analysis
Support is an explanation of the point to which when the price returns, it rests for some time and then rises again. Think of it as a safe house for the price, and it is unlikely to fall below it.
So, when the price reaches the support area, the possibility that the price will decrease is small, and it is the period of the beginning of the rise again.
As for the reason for naming it as a region, which is because it is impossible to determine the price with a specific number, but rather the price range of this range, the price is the support area.
The current support range is from 26k to 28k.
So, when the price reaches the support area, the possibility that the price will decrease is small, and it is the period of the beginning of the rise again.
As for the reason for naming it as a region, which is because it is impossible to determine the price with a specific number, but rather the price range of this range, the price is the support area.
The current support range is from 26k to 28k.
Actually I am very new on trading, And while browsing the forum, I saw that most of the time people are talking about the support zone, can someone please explain to me what the support zone is, I would be a little more happy if you explain it through a chart. how can I identify the support zone ?
Been a newbie in trading will attract more panicks and losses if one is not careful. We have Resistance and Support zone on the charts, it's very easy to spot them out when trading because they served as the pillars that guide one into getting clear view on when the market will have a breakout with additional pumping and dumping. Reading complex crypto related PDFs inother to get access more knowledge in the market. We have both technical and fundamental analysis in the market, it depends on the crucial path you want to anticipate. I would urged that a trader starts with technical analysis inother to improved in the market. 
Actually I am very new on trading, And while browsing the forum, I saw that most of the time people are talking about the support zone, can someone please explain to me what the support zone is, I would be a little more happy if you explain it through a chart. how can I identify the support zone ?
The support zone is like the lowest point to which the price can go and cannot go further below that point. This is the most simple definition I can recall for you. In other words, the name of the Support zone gives us the whole idea of giving support (help or indications) to traders to conclude beneficial signals from market behavior. In this way, traders and even holders can save more money. You demanded a chart, I will take an example of BTC pair which consists of a support zone tagged as 12,200$.
These support zones are not always correct. As we all know the market is so unpredictable but so far these support and resistance zones are helping us out in many ways like when the BTC hit its ATL (All Time Low) in the previous cycle which was around $16k. This price was considered the lowest point to which BTC can go and not below it. So $16k was the support zone for BTC.
You may ask now, What is Resistance? That's the opposite of the support point, Which is the point you have set on any asset or commodity from which the price will not go above and you decide accordingly to sell or buy your trades.
Actually I am very new on trading, And while browsing the forum, I saw that most of the time people are talking about the support zone, can someone please explain to me what the support zone is, I would be a little more happy if you explain it through a chart. how can I identify the support zone ?
The level where buying pressure is there and usually takes a huge volume of selling to break through, that ends up being a support level and these are usually the prices where investors have bought the coin previously. Historically there are many support levels which people have been placing buy orders at and keep them strong.Think of it as a big bunch of buy orders to negate most of the sell orders such that the price does not drop below that. Opposite to this will be the resistance level which you can now make out on your own.
The use of these levels is to plan your buying point and whether you should play it safe and buy at even lower to maximize profits on the opposite side when you sell.
Check the link that BitMaxz give above, it would help you.
There is nothing hard about support zone, it is just a price that a coin is not going further below, even if the coin slightly go below the price, it would rise back not long. Example is when bitcoin has been around $28000 recently which shows a very strong support at that level.
The opposite is the resistant zone.
There is nothing hard about support zone, it is just a price that a coin is not going further below, even if the coin slightly go below the price, it would rise back not long. Example is when bitcoin has been around $28000 recently which shows a very strong support at that level.
The opposite is the resistant zone.
You won't be able to identify the support zone without the trading knowledge you must learn first technical analysis before you can able to identify the support zone.
I suggest you learn technical analysis some indicators should give you an idea of where the support resistance is.
Read some guidance here https://github.com/SpiralDevelopment/Awesome-Crypto-Trading
I suggest you learn technical analysis some indicators should give you an idea of where the support resistance is.
Read some guidance here https://github.com/SpiralDevelopment/Awesome-Crypto-Trading
Actually I am very new on trading, And while browsing the forum, I saw that most of the time people are talking about the support zone, can someone please explain to me what the support zone is, I would be a little more happy if you explain it through a chart. how can I identify the support zone ?
Jump to: