The importance of support resistance

[Moyna Akter]

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.

[el kaka22]

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.

[babygun]

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.

I agree with you. These support levels are based on technical analysis, but nobody can really predict the market.
You need to set your own limits when trading (buying/selling), but the big question always is: how to determine these limits?
For some cryptos I have set up a sell order when I have a profit of 25%. Taking profit is always a good idea!

[sheenshane]

snipped-
.. but nobody can really predict the market.

I tend to agree with this that we can't really predict the market, as long as there is unknown about in the future and certain speculations may occur.
To have closer gues in predicting price, fundamental and technical analysis is very needed. This support and resistance levels are important matters when it comes to a time where the forces of supply and demand meet, then you will have your TA upon analyzing the chart pattern.

This support resistance is very useful when you plotting the chart and found where is resistance level and support level.

[GreatArkansas]

Support resistance is safe to trade but there are many risks involved initially

I think that the risk involved in it is because people rely on just trading breakouts. Breakouts usually come from when support or resistance fall or break. But this is risky as breakouts can be moment and revise soon.

If you are mainly using supports and resistance in trading, then probably your every entry in your trades are on breakouts or on pullbacks if ever it's already too late, like after the breakout, your order didn't hit or you late to enter on your entry price.
All trades are risky but for me, this is much better if you will have your stop-loss placed after you enter your trade and also the risk: reward ratio is important.

[LUCKMCFLY]

In my personal opinion I see supports and resistances as areas of opportunity, for me the only ceiling is $ 20K, if there are areas of usable opportunities they are executed according to the plan, I think that supports and resistances vary according to the temporality that is done trading. A scalping support or resistance is not the same as in the long term, the areas of opportunity vary.

[FanEagle]

Personally I have tried to make use of pivot point analysis and have concluded it is very efficient on finding intraday buying and selling levels. Pivot point analysis is all about identifying support and resistance levels based on yesterday's high, low and close along with today's open. Through pivot point analysis, I have wondered on seeing markets do make reversals at support and resistance levels at uncountable times.

If you are able to identify support and resistance levels through any of kind of technical analysis, then you can easily ride on market directions.

RSI is another tool to identify overbought/oversold regions; whereas overbought/oversold regions can be interpreted as resistance/support levels respectively. When you are using more than one tool to spot support and resistance levels then you can be sure about market to obey those levels more accurately. Combining more than one strategy/tools is always recommended which got no exceptions for support/resistance based trading as well.

[akram143]

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.

How can people analyse the market and make the decisions without knowing the support level? People who trade based on technical analysis will keep that in their mind but its not always good thing because the resistance level can be broken at any point. We can minimize huge loss using stop loss feature but not much benefits other than this.

[Harlot]

Support and resistances are just some indicators that cannot be used alone since we all have seen it that they are often breaking out of or breaking down of since this market is volatile making it hard just to rely on looking at a crypto asset purely on their supports and resistances. Actually fully trusting their supports and resistances might lead you to have a bad trade because of not analyzing the different aspects of the chart like looking at their volume if their is a massive selling or buying happening which could easily determine if there is a high chance of breaking that support of resistance. For me basically looking at their support and resistance can just be treated as a guide on when it is safe to buy or not as well as sell or not.

[milewilda]

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.

Whose trader would be the one to forget support and resistances? since this would be the main or primary tool that would be used once you do some charting.For experienced ones you can even
imaginably able to draw out these lines with just staring up those candles but this would base of on how long you've been dealing with technicals thats why some traders wont really necessarily plot out
these lines but they are already being plotted and already being presumed out. These indicators are one of the most important and a common one because you can make analysis whether you do exit
or you do enter into the market.

[logfiles]

Those are just indicators just like any other Technical Analysis indicator. You can't relay on them 100% though the support and resistance levels can guide you on your entry and exit points.

If the support and resistance levels were 100% reliable then we would be having any breakout. In trade, remember there is someone there who trusted a support or resistance level and a breakout got them rekt.

[Yaunfitda]

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.

It's as important at having your entry and exit strategy. But the problem is that new traders doesn't want to learn some basic trading strategies, they just want to go there and trade and then complain when they loss money in cryptospace.

Here is a good read about the subject:

https://www.investopedia.com/trading/support-and-resistance-basics/

Yes, I agree that they are not 100%, everything in trading is not a guarantee, but at least knowing the basic and then you can learn as you go along.

[crzy]

As a trader you must use the indicators that you think can help you on your trading decision and the support and resistance can be a very big help even on a simple trading plan. If you’re a trader the indicators that you’ve learned is already on your heart, you just avoid using it since you know better now and of course the trading strategies will depend on you now.

[Twinkledoe]

Those are just indicators just like any other Technical Analysis indicator. You can't relay on them 100% though the support and resistance levels can guide you on your entry and exit points.

If the support and resistance levels were 100% reliable then we would be having any breakout. In trade, remember there is someone there who trusted a support or resistance level and a breakout got them rekt.

There's no such thing as 100% reliable in crypto market. There are a lot of factors involve and considering all of them is quite tough. That's true, those who will trust this support level may end up getting rekt. We can't be sure of things in this volatile market.

As a trader you must use the indicators that you think can help you on your trading decision and the support and resistance can be a very big help even on a simple trading plan. If you’re a trader the indicators that you’ve learned is already on your heart, you just avoid using it since you know better now and of course the trading strategies will depend on you now.

TAs will help you in the assessment but if you are trading specific coin, most of the time TAs don't work because it depends mostly on what is happening about the project.

[whyrqa]

Support and resistance levels, this is practically the basics of technical analysis again and it is these indicators that all trades use without exception. If you do not use the support and resistance levels, then this will practically be the work of an investor who relies only on fate. But if an investor wants to predict at least a little the indicators of his profit, then the level of support will show him the possibility of increasing prices, and the level of resistance the possibility of falling prices.

[BitcoinTurk]

Not only support points, but also resistance points are one of the most important factors to follow when trading. While performing technical analysis, we should act knowing that the most important levels to be considered are the support and resistance points, and we should carefully analyze the distance or proximity of these points according to the price. I would also like to point out that the analysis made using only indicators has a very high margin of error, but compared to these, the analyzes made using only support and resistance points have less margin of error. It should also be noted that support and resistance prices are not sufficient in some cases, especially in the crypto markets, and there is the possibility of misleading investors who make analysis.

[Smitty Werben Man Jensen]

in my opinion is very important, support and resistance make traders know where to buy and sell, let alone combine it with other indicators which will certainly be more accurate

[Sanugarid]

Personally I have tried to make use of pivot point analysis and have concluded it is very efficient on finding intraday buying and selling levels. Pivot point analysis is all about identifying support and resistance levels based on yesterday's high, low and close along with today's open. Through pivot point analysis, I have wondered on seeing markets do make reversals at support and resistance levels at uncountable times.

With so much volatility analysis will just give less than a percent of what you are trying to find in the market, every day it is a different scenario in the market so might as well you study hard the last night before trading today. The support and resistance serves me a reminder that, there are people who is holding firm and then there short guys who is enjoying on the surface of volatility which makes the market unstable at all which is natural for a crypto market.

If you are able to identify support and resistance levels through any of kind of technical analysis, then you can easily ride on market directions.

The resistance can break any time, it is not a solid foundation of the market. Still the speculation is the core and technical analysis is not ideal for the market situation right now.

[ReiMomo]

Those are just indicators just like any other Technical Analysis indicator. You can't relay on them 100% though the support and resistance levels can guide you on your entry and exit points.

That is, you cant rely but it will help you to find the nearest x amount of your speculation in market price. This support and resistance level will help you to forecast nearest to close prediction through the help of technical analysis.

In that case, I agree that the market price was remained unpredictable but you cant simply guess on it, it seems it's awkward to have baseless speculation without a help of any indicator.

[FanEagle]

With so much volatility analysis will just give less than a percent of what you are trying to find in the market, every day it is a different scenario in the market so might as well you study hard the last night before trading today. The support and resistance serves me a reminder that, there are people who is holding firm and then there short guys who is enjoying on the surface of volatility which makes the market unstable at all which is natural for a crypto market.

You can consider support and resistance points as vital things when doing trading and I would agree that it is vital importance during technical analysis but like I mentioned do not think that they are by all be all numbers, they are just small numbers that does affect a bit but they are still quite breachable and movable very easily when a major movement happens. It is your personal decision to use whatever one when you want but also be ready to ignore them when you should as well.

Just because there is a huge support for example doesn't mean that it will not go down neither, or just because there is a big resistance doesn't mean that it will be hard to go beyond neither. These are important numbers when dealing on day trading but becomes useless when we are talking about long term investment to bitcoin.