The importance of support resistance

[tbterryboy]

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.

For people who are new to these terms, support is the price level of a coin or an asset where there are many buy orders (high demand) due to which downtrend can pause or slow down. And resistance is a price level of a coin or an asset where there are many sell orders (people trying to sell interest during high prices) due to which uptrend can pause or slow down.

These are some important terms when you are studying charts and about technical analysis. Although not much reliance can be place upon such levels as they might even be fake support or resistance walls created by whales etc.

[so98nn]

In the crypto world though things are messy at any given point. I mean the support which has been analysed in the initial phases by using any technical analysis doesn't last longer. That is why crypto trading and it's assets are very volatile. With the current scenario we can only rely on the real time data and news surrounding the crypto world. They fluctuate the coins drastically and thus making no use of support resistance.

I am not sure how many of you will agree upon this but it is the case now a days. If you start calculating then you will find there are not just one two or three but many resistance levels that will come out eventually. So be careful while targeting these levels. 

[electronicash]

the support is the line where there is a buy wall if you consider it a buy wall which the price usually bounce in a certain time frame. whether it be daily chart, 4 hour or 1 hour time frame, it has different support and resistance line.

traders i knew treat support line as the price where they get to buy back but will also depend to the other indicator they use whether it agrees to where the support is. support and resistance line are important but can also be unimportant when considering the volatility of the crypto market and if there is a bear market.

[Quidat]

the support is the line where there is a buy wall if you consider it a buy wall which the price usually bounce in a certain time frame. whether it be daily chart, 4 hour or 1 hour time frame, it has different support and resistance line.

traders i knew treat support line as the price where they get to buy back but will also depend to the other indicator they use whether it agrees to where the support is. support and resistance line are important but can also be unimportant when considering the volatility of the crypto market and if there is a bear market.

It depends on what kind of trader you are which means that you would need to find biases on each timeframe before making a plotting on said support or resistance.When we do talk about importance then of course this is one of the most important things in trading on where we do consider first the possible entry price or level on where the movement would be heading.We can presume that there would be always a bounceback but we
know that price can breakout without a problem which would trigger out our stoplosses if you have put some, if not then negative will surely goes deeper.

[fullhdpixel]

The very first thing I tell people to learn is the support levels and resistance levels and why you should ignore them most of the time.
Definitely they look like they are very important in grand scheme of things and when we are moving slowly they look important because prices move up and down according to those levels.

However do not forget that bitcoin moved from $9k to $3.6k in 5 hours in march 15th because of covid depression.
Do you know how many support levels there are between $9k to $3.6k and how much bitcoins required to sell before it reaches those levels?

I can tell you that it s a lot, it is insanely a lot, BILLIONS of dollars. That is why do not worry about support and resistance levels like they could stop something but also do not disregard them neither because they are what makes bitcoin move during calm days like today for example.

Indeed. No reliance can be placed on support and resistance levels as the demand can increase or decrease by greater percentages rendering those walls useless. Moreover, as the market is highly volatile, unstable and manipulated by whales and higher entities, support and resistance walls get taken down in an instance.

When the market shows organic movement free from hype and other manipulation, having knowledge about these levels could prove very helpful in day trading or even when you are investing for long term. They play vital roles in forming the chart and technical analysis and prediction the movement pattern.

[wiss19]

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 don’t know for people saying you should ignore this.
For me, I think this is very important, especially when you’re a new trader that is still struggling to achieve in this volatile cryptocurrency market.

You should study everything that you’re mean to know about Support and Resistance, and what this does is that it will help you as a trader to be able to identify where there are strong supply and demand. I don’t know if you have ever checked some technical analysis by experts, like on Cointelegraph? They will always identify the areas of support and resistance. It’s going to be helpful if you learn it.

[stomachgrowls]

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 don’t know for people saying you should ignore this.
For me, I think this is very important, especially when you’re a new trader that is still struggling to achieve in this volatile cryptocurrency market.

You should study everything that you’re mean to know about Support and Resistance, and what this does is that it will help you as a trader to be able to identify where there are strong supply and demand. I don’t know if you have ever checked some technical analysis by experts, like on Cointelegraph? They will always identify the areas of support and resistance. It’s going to be helpful if you learn it.

You would really be like a blind man in that case where you do trade without realizing or knowing on what are the support and resistances? Of course its important and even people do talk

about technical tools arent that useful but majority had been using this when they do first see into their charts.I'll surely bet on this one which this is the most common that would be plot out first

when making analysis.I dont know why there are people whom do consider for this to be useless, yet having no S&R will not really give you the idea or picture out on the current or recent supply and demand.

[justdimin]

What you can do with this information is to gather as much stop loss and buy orders and sell orders as you can on a bot or if the website allows it on the website itself and just sell and buy accordingly but do not forget that these support lines and resistance lines can be broken very easily whenever people want.

Remember last year we moved from 3k levels to 14k level in a month without a care about the resistance levels, or just a few months ago we dropped from 9k to 4k once again without caring about any support levels. These levels are important on day trading and making small profits like 1-3% or whatever but in reality there is no way you could look at them and make a huge amount of profit, there is no money to be made from just checking these, you have to consider other stuff as well.

[Neconic]

So98nn, I dont know how much time you have spent with technical analysis, but it is quite normal that there is high number of support – resistance lines, which depends on which time scale you are charting. If you open long term historical chart you will probably find only few long term SR levels

[pawanjain]

Obviously Support and Resistance are important and I consider it to be among the most important factors for crypto speculation.
I have been doing trading for quite a few years and I have experienced many times that the Support and Resistance play a major role in deriving the next crypto trend. I have seen bull runs when bitcoin broke the resistance and also I have seen the bearish trend when bitcoin kept on breaking the support.
Even today I believe the next bull run will be when bitcoin breaks the resistance around $15k.

[Emitdama]

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.

Support and Resistance is important for anyone who is trading. If you’re still a newbie in trading, making use of Support and Resistance is going to be helpful to you in lots of ways. I have seen some analysts who make use of resistance and support to show people when they should sell and when they should buy. If you’re a new trader you can make use of the support level to know when you’re going to buy, or if you’re being short you can take profit at the support level, and take profit at resistance when you’re being long.

[nelson4lov]

Took the first few minutes to go through the replies on the thread, totally worth it. Here's my thoughts:

Like other technical trading tools, support and resistance have their usefulness and shouldn't be neglected. At the same time, there are other tools with their use cases. I take support and resistance as guidelines for zones where I want to place either my entry orders, stop loss orders or even take profit orders.  It often acts as an "area of value" for me. And regardless of whether or not it holds or breaks, It's still worth keeping an eye and taking note of it as these zones are often retested from time to time.

At the end of the day, It all boils down to which tool a trader feels comfortable using but having even the basics on support and resistance goes a long way to help. That said, I use support and resistance with other tools like Fib retracement and Bollinger bands to better time my entries.

[Lanatsa]

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.

Support and Resistance is important for anyone who is trading. If you’re still a newbie in trading, making use of Support and Resistance is going to be helpful to you in lots of ways. I have seen some analysts who make use of resistance and support to show people when they should sell and when they should buy. If you’re a new trader you can make use of the support level to know when you’re going to buy, or if you’re being short you can take profit at the support level, and take profit at resistance when you’re being long.

Easy to say but it is really hard to be executed because even we do know the support and resistance the current price market movement would make it more harder for you to make up
such decisions but i do agree that support and resistance is a default tool that you must use.

You can able to spot out on what levels do the price had been rejected and the possible point on where it can bump its head or might able to break it out.If you do know to spot
these levels then you can make your own entry and exit points.

This might be sounds too basic but it is one mainly needed.

[DevilSlayer]

Did you all know that the foundation of technical analysis is the support and resistance, if you just know that concept and for sure you can able to make gains in the market. A lot of traders are keep making mistakes because they think that support and resistance are not important, like what I said it is the foundation of the technical analysis. A lot of trading strategies are have requirement which is you should able to understand the support and resistance. You can able to know where the price may go just by mastering the plotting of support and resistance.

[carlisle1]

Obviously Support and Resistance are important and I consider it to be among the most important factors for crypto speculation.

It's a good basis when anticipating the next market movements, placing your orders that based from this information gives you better
chances to gained from the market.

I have been doing trading for quite a few years and I have experienced many times that the Support and Resistance play a major role in deriving the next crypto trend.

Once you have a good familiarization with this trading tool, it will lessen the chance of losing your investment.

I have seen bull runs when bitcoin broke the resistance and also I have seen the bearish trend when bitcoin kept on breaking the support.
Even today I believe the next bull run will be when bitcoin breaks the resistance around $15k.

Though it's not that accurate due to possible sideways, but the chance is much higher if there's no manipulations that will take place.

[sana54210]

There are so many things that you need to consider before you could trade that at one point I think it is close to impossible to check everything before you do a trade, how does the day trader check everything before they trade it? You have to do TA first, all those indicators all those bollinger bands and macd and so forth, all the support and resistance points, all the volume and liquidity stuff, all the stop loss stuff and buy and sell orders.

Basically we are talking about a million things you should do before you trade, it is a cool thing to know because it would allow you to profit a lot faster and a lot more commonly but it is definitely still a very hard thing to do. Support and resistance is a part of it, not the whole of it but definitely is an important piece.

[gabbie2010]

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.

My trading strategy is based on price action on support or resistance and support lines basically after drawing those lines I always wait for price breaking those lines and subsequently retouching it i.e resistance turning support vice versa I lay emphasis on price reaction using rejection candles after touching those lines and I used those lines also to determine where  my stop loss will be placed subsequently aiming a take profit in the next line while considering my reward to risk ratio this lines are important and must be incorporated into any trading strategy.

[Mahanton]

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.

My trading strategy is based on price action on support or resistance and support lines basically after drawing those lines I always wait for price breaking those lines and subsequently retouching it i.e resistance turning support vice versa I lay emphasis on price reaction using rejection candles after touching those lines and I used those lines also to determine where  my stop loss will be placed subsequently aiming a take profit in the next line while considering my reward to risk ratio this lines are important and must be incorporated into any trading strategy.

Hardest part on making up these decisions is on when you do presume out that those points or levels of support and resistances if there would be no happening some breakouts or
rejections and this is where trading makes it more harder where you cant guess on what would be the next price action would happen.Overall using up these technicals are pretty common.
I cant imagine for someone not to able to make use of these since this had been always the basis or tool that can make you spot out on where price do bounce nor breaks.

[BuNga_cute]

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.

[lixer]

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 think it all depends on the traders, sometimes the information you’re getting, no matter how you might be thinking you’re getting that information, it’s probably going to be late, so it’s up to you on what you want to do.

There are people who are trading without making use of support and resistance. Just like some people will always tell you that if you can’t trade smart, then it’s best that you just forget about anything that has to do with trading. People can trade without support and resistance, but before you start trading, it’s good that you understand everything developed strategy.