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June 24, 2020, 01:04:28 PM |
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Support & Resistance
If you want to do crypto trading, you must have a good idea about Support & Resistance, otherwise you will face a lot. You can understand a lot of Support & Resistance by looking at it.
How do I use Support & Resistance to make a Buy & Seller decision? The mistake that can easily get your claim denied is to fail.
What is Support & Resistance?
Support is a price label where the price gets support after coming, meaning the price does not go down anymore, it comes to this label and breaks the price bounce where the buyers are much stronger.
Demand is created in the support label due to which the price comes and reverses and once it breaks the label then the price goes down till another support label is found. And the Voice Versa is Resistance,
Resistance is a price label where after reaching the price the barrier means it can no longer go up where the seller is too strong Agreece due to which the price bounce breaks i.e. the label goes down without breaking
If it breaks the label, it will continue to rise until it reaches another resistance label.
If you still do not understand, see below as an example.
Suppose you are standing on the 3rd floor of a four storey building where you are standing is your support and the ceiling above you is your resistance.
That means the floor is the support ceiling is the resistance. You are getting support on the floor and when you are going near the ceiling, you are getting obstructed, that is, you cannot go. Now if you break the floor and go down, then what was support before, it became resistance and a new support was created below. And if you break the 3rd floor and go upstairs, the resistance that was there before has now become support and a new resistance has been created upstairs.
When a price comes close to Support & Resistance, but the price fractures up and goes down, then Buy & Sell cannot be done because there is a possibility of a Breakout & Breakdown.
If there is any mistake in the Support & Resistance discussion, please forgive. And if you have any information, please let us know in the comments.
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