The importance of support resistance

[RealMalatesta]

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.

[ScamViruS]

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.

[nelson4lov]

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.

[Vispilio]

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...

[Twentyonepaylots]

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.

[DoublerHunter]

 ^ 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.

[Stedsm]

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.

[rodskee]

^ 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.

[rima28]

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.

[rahmatullah9305]

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.

[tvplus006]

...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.

[otundebis]

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. 

[zaesvlas]

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.

[JohnBitCo]

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.

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.

[Alisha FR]

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.

[TheEconomists]

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.

[flip4flop]

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.