Support & Resistance (Basics)

[CryptoMobster]

This is somewhat overlooked when people are looking to buy, sell or trade their crypto. You need to find potential sticking areas. These are usually clumps of resistance or clumps of support which indicate the rules of which people stick too. These can be done in a form of trendlines, but for the basis of this; going to show you via horizontal lines

TOP: RESISTANCE

BOTTOM: SUPPORT

When a coin goes over resistance and the candle closes. That then becomes support and the next level becomes resistance.

Default Chart. ZIL/BTC:

Go onto the 4-hour time-frame and zoom out and look for areas in which you believe the price stops and 'bounces'

For example:

Then you need to zoom into that area and on the tops and bottoms put a horizontal line...

When it breaks down below support, that support then becomes resistance and you need to find a new support.

As seen here via the arrows:

Any support and resistance you put on, if you look left and go back in time, they should be pretty much on previous supports and resistance zones.

Current channel area for Zil is this...  

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[deandree]

Yeah support and resistance works ... until it doesn't

[I am insane]

Yeah support and resistance works ... until it doesn't

yes support and resistance  and trendline are not everything we should also know which S&R is important not all s&r are important we must see the action appening at those levels and then decide the position

[CryptoMobster]

Yeah support and resistance works ... until it doesn't

lol, just one confirmation you should always look at, no point entering a coin on resistance lines if it fails to breakout

[Upgrade00]

lol, just one confirmation you should always look at, no point entering a coin on resistance lines if it fails to breakout

This is also dependent on the type of trade being practised, short-term day trade, or longer periods. And it's also dependent on the coin being invested in.
Strategies are guidelines, but when trading, instinct sticks out more. And this is acquired through practice and experience.

[cindygirl]

Yeah support and resistance works ... until it doesn't

Something doesn't have to be right 100% of the time in order for it to work. These markets are completely irrational at times, there's no way to fully predict the price movements, support and resistance levels work a large amount of the time and as long as you know how to properly use stop-losses you should be able to profit by accurately identifying them and trading within them.

[richcorner100]

To determine support resistance can be easy by looking in to historycal price and chart pattern but support can become resistance because any high impact news, so we should be never forget to use stop loss to avoid loss from wrong trade.