The importance of support resistance

[Yamifoud]

We can use support and resistance in so many ways and can be used as the combination of many indicators which is important as well. Even this simple indicators can make your trading more successful than using nothing so don’t forget the basic. We actually don’t need to use so many indicators just to prove the trend, look at the simple S&P then you can see the whole picture clearly.

Yeah, having TA's, charts, signals, and etc...never have that huge effect in trading instead it makes us be bothered and undecided but if we focus on the market event by simply seeing into the volume and market support level will make a way to have a good decision. In fact, the market will remain unpredictable, thus, anything will happen later will certainly not be seen into TA's or whatever it is (the ups and downtrend) but seeing it through the market resistance level will something it helps a lot.

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[bigcash2011]

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.

Yeah exactly, support and resistances forms the basis of the technical analysis some people call it old days strategy of trading but i agree it is still valid but it is better to use other confirmation signals alongside just support and resistance that will dramatically increase your winning ratio. Also if one is trading solely on support resistance levels then he must be vigilant regarding breakouts and breakdowns and use tight stop loss range to avoid big losses.

[davis196]

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.

The Bitcoin market price is formed by aggregating buy/sell order data across most of the big cryptocurrency exchange platforms.Explaining the market with terms like "support" and "resistance" seems like a great oversimplification.The market isn't some living creature.
I think that the so called "support" and "resistance" are just time frames,when there's balance between the buy and sell orders on most crypto exchange platforms.If the buy orders increase in quantity above the sell orders,the price starts increasing.If the sell orders are more than the buy orders,the price is going down.
Complete balance is almost impossible to be maintained for a long period of time,so the "buy/sell order" balance breaks and the price goes up or down.
 

[SARA ISLAM]

Trading at support resistance level is very effective as it can make the stop loss much smaller. Trading at support resistance levels can be done with much less risk. The best strategy in my opinion is to trade with support resistance and candlestick pattern.

[Ridwan Fauzi]

The basic knowledge to trade is indeed support and resistance. We never be separate in our daily trade in another strategy so the first thing to do when someone has intention to trade is they must know about support and resistence. Because with support and resistence we will know where we should in to the market and to choose a profit that we want. I believe when you start trading and you just know support and resistence you won't lose a lot of money in your daily trading but you have a chance to gain a lot of profit in. And so far, I just use two strategy when I trade i.e support and resistance and fibbonaci retracement.

[Smitty Werben Man Jensen]

Trading at support resistance level is very effective as it can make the stop loss much smaller. Trading at support resistance levels can be done with much less risk. The best strategy in my opinion is to trade with support resistance and candlestick pattern.

absolutely right and I will add a little, which is about the RSI, if you combine support and resistance with the RSI indicator you will be able to determine the exact buy and sell, hopefully it will help you  

[RenBct]

It's true. It's super important that you learn these things. Support and resistance are like your safety net in trading. Without it. It's like driving blindfolded. Indicators or patterns are not always accurate. So if it goes sideways, You have that safety net that will limit how much you will lose on the trade.

[XZERO1]

Support and resistance while is easy to use it's also one of the most proven tools that actually works most of the time in all markets including crypto market, but in lower volume/liquidity pairs you have to be more careful because all indicators as well as support and resistance can be misleading an inaccurate sometimes, I only see RSI and support/resistance as indicators that works in most trades and I barely use any other indicator.

[MCobian]

One key to successful trading is to master knowledge about support and resistance. Because if we can determine the price of support
and resistance, we will be able to estimate when the coins will pump or dump. Therefore I strongly agree with support and resistance
very important in trading. If you are a trader and do not understand support and resistance, I make sure you often experience losses.

[rodskee]

Support and resistance while is easy to use it's also one of the most proven tools that actually works most of the time in all markets including crypto market, but in lower volume/liquidity pairs you have to be more careful because all indicators as well as support and resistance can be misleading an inaccurate sometimes, I only see RSI and support/resistance as indicators that works in most trades and I barely use any other indicator.

With low volume inside crypto pairs chance that manipulation will take place, knowing the
behavior of exchange and the whales,
It's not impossible that everything can be fake, movements can be influenced by bag holders
who loves playing the market.
It's best to work with your knowledge before you invest your money.

[el kaka22]

if we can determine the price of support and resistance, we will be able to estimate when the coins will pump or dump.

If you are able to identify support and resistance levels then you can enter/exit in profitable way but you cannot do anything with pump or dump as those manipulations are being performed by whales who do not bother support and resistance things but technical people do adjust them by having resistance-1/mid-point-1/resistance-2/mid-point-2 etc.

For example, by April/May 2019 BTC prices rallied from $3800 levels to $13,500 levels without bothering any resistance levels in-between (currently we are bothering about $10k levels as a biggest one but it was broken very easily at that time). So, if you have followed your support resiatnce thing by that time then you might have booked profits at resistance-1 and someone might had not watched markets and had not put any target order, somehow got opportunity to book above $12,000 levels.

This is the reason, people do call trading is all about "probability".

If you are a trader and do not understand support and resistance, I make sure you often experience losses.

Not necessarily. Traders may set target without realizing about resistance levels and when more people do follow same kind of strategy, that target level becomes a strong resistance level. Same applies for support zone. When more people do buy out of their strategy, price will not fall further hence we do identify that prices as support levels.

[spike420211]

In my opinion, support and resistance levels work best in the short term. In the long run, there are many risks.

As the example above was shown above, under certain circumstances, the tool can give a damn about all the support lines and collapse in 5 hours, as Bitcoin did in March.
But in the case of scalping, these levels play the role of excellent navigators in predicting prices in the short term.

[milewilda]

In my opinion, support and resistance levels work best in the short term. In the long run, there are many risks.

As the example above was shown above, under certain circumstances, the tool can give a damn about all the support lines and collapse in 5 hours, as Bitcoin did in March.
But in the case of scalping, these levels play the role of excellent navigators in predicting prices in the short term.

Support and resistances are the main tools which do most traders make use specially to those who are fan of doing technical stuffs and you would really need up these kind of indicators because you would need to
see on where prices do bounce back and do break.You can plot on trend lines together with it so that you can determine on where it could possibly go in terms of price movement.
When you are experienced and skill enough you can even able to plot out into your mind and able to identify support and resistance without the need of plotting it.
When we do talk about importance then this one is relevant and helpful.

[beerlover]

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.

Market will always obey support and resistance levels because they are the backbone of market and based on support and resistance levels only market finds its fluctuations. What are all the technical analysis which are focusing on spotting support and resistance levels then those analysis could give us accurate entry and exit signals. Interestingly what all we need is finding where to enter and where to exit and support and resistance analysis provides that exactly but we are all looking for some other things with the help of different strategies by ignoring these.

Moreover with the help of support and resistance based trading we can go for shorting way of trading even with spot markets with the help of stable coins. All you need is, selling your BTC for stablecoins at resistance levels and then buying back BTCs at the support levels.

In my opinion, support and resistance levels work best in the short term. In the long run, there are many risks.

How? You can find out long term support and resistance levels as well. Just the different time-frame will not alter any of risks in support/resistance analysis. There are multiple analysis are available for spotting support and resistance levels and when more than one analysis say about same price zone then that could be interpreted as strong levels. Strong levels are known for working even in long time frame.

[cheezcarls]

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.

Despite we acknowledge the roles of support and resistance levels, nothing is guaranteed and safe. Analysts have different technical analysis of their own regarding the support and resistance levels. We cannot predict the cryptocurrency market right now, as we have to invest and trade at our own risk.

As long we are equipped with risk management and diversification, our disappointment level would be a bit less when things turn red. It’s better to trade on our own, and use the basic principle of buying low and selling high. 

[TitanGEL]

The support and resistance are the foundation of the technical analysis, for those new traders who want to learn technical analysis; their focus must bet learning on how to plot and identify support and resistance. It is important because the prices are usually move inside the support and resistance. If the price surpass the resistance it called breakout, but if the price goes down support; it is called breakdown. If we master to use it then for sure we can earn consistently in trading.

[Assface16678]

There is a lot of help with the use of this combination because this gives you a good market signal what are the coming movements on the market so you can be aware when is the down and uptrend to make a good investment.

• Resistance - this is the highest market peak of the market coin sometimes when the coin forcing itself too much to reach and best the resistance there is a higher possibility that the price of the coin drops. But if the price of the coin makes a good movement and rapidly increasing there is a chance to make more price increase. 
• Support - this is the time when there is no too much market volatile we called this sometimes as a stable time of the coin. Still take care of it because this may drop the market price.

Always alert about the things that happen in the market with the use of that you can win a lot of money and avoid too many losses.

[Salauddin1994]

The importance of support resistance is usually placed on the price of market currencies. Everyone supports it when the price of a currency goes up. On the other hand, the results of the situation during the resistance situation monitoring try to improve the situation below the price of the uploaded currency. The analysis, support and reporting of Vedic currency technology to customers is the basis of a project whose value is closed and vice versa. In the case of technology analysis, their direction is changing.

[sana54210]

Well, when you use these type of information and trade accordingly, it doesn't guarantee you earning something but at least it makes sure that you do not lose too much. You could pick that up and you could say that using a stop loss based on the support levels or using buy orders depending on resistance all could lead to something that would help you make a bit more money.

Like I said it is not a guaranteed way of making money but at least it does help you out a bit and in trading world you have to use everything that helps you out, every small detail that would help you is very crucially important thing and that is why I believe support and resistance should be taken advantage of and should never be left alone when trading and not used, if you do that you are leaving a lot of advantages on the table.

[jrrsparkles]

Even complete technical analysis may not be really helpful for a long term trader and highly risky to implement in the day trading as well but we have no other choice other than following indicators which gives some idea but it may not be entirely true all the time so risk management is a must factor when we are going to day trade.