To Deal with Resistance and Support

[BlackBoss_]

Exactly and that's why a lot of traders are having difficult even in just using supports and resistances.
Some are getting stopped from loss hunt just because of wrong placing or identifying of supports and resistances.

They learned like strong supports are safe to entry and strong resistances are risky to hold. They feel betrayed when they hold but strong support is broken and price falls down or when they sell but strong resistance is broken out and price soars.

For me, it's extremely important to identify and using it even what kind of strategy you are using because it will help you the price level where you can see lot of liquidities and can help you to enter a better trade.

Trading volume is strongest indicator to reflect what is happening on the market. If price rises but trading volume is low, it won't stay for too long because demand is low, supply will always be big and selling pressure just waits to appear.

If price goes up with good growth of trading volume, price can maintain at high level for a while, long enough before trading volume drops and corrections come.

[kingvirtus09]

When a trader uses an exchange platform to perform trading activity, support and resistance levels are not always precise. Because of this, other traders and scalpers employ tools other than support and resistance.

The other thing they do is combine the tools so they can accurately determine which way the coin's value is moving, am I correct? Then, what is the direction that they believe the price is most likely to take? The traders will start making forecasts at that point, after which they will set a buy or sell order.

[RioBlemz]

When a trader uses an exchange platform to perform trading activity, support and resistance levels are not always precise. Because of this, other traders and scalpers employ tools other than support and resistance.

The other thing they do is combine the tools so they can accurately determine which way the coin's value is moving, am I correct? Then, what is the direction that they believe the price is most likely to take? The traders will start making forecasts at that point, after which they will set a buy or sell order.

Most exchange platform have little deviation from the norm. One good advice is that when you treat support and resistance as a zone it covers for those deviation. Another thing is that you can go to other useful platform like TradingView etc. to do your analysis then come back to your exchange platform and place trade.

In your second sentence you are correct. combine support and resistance with other tools for analysis. It is from your analysis you know the direction the market will most likely take.

[darewaller]

At the same price or in a same price range, resistance and support will change its role with time. At some point of time, a price is a strong resistance but at another point of time, it will become a strong support.

To deal with resistances and supports, you must know it and in action you must not bind yourself with an idea like that resistance is strong and can not be broken out, that support is strong and price will not be dumped under it. If you have such controversial thinking and belief, you will make bad trading positions and if you use leverage, Futures trading, you will be liquidated.

In the cryptocurrency market, anything is possible here so it's important to have a well-detailed plan so that we can prepare for every possibilities that can come. It's also important to have a clear mind so that we can we can do a proper action or we can decide easily. Beliefs such as superstitious can't do anything on here.

There are times that we can get a correct trade but it does not mean that our beliefs are working. In crypto trading, all we need here is knowledge in order for us to perform better. More if we will do those types of trades you mentioned there because all of them are very risky when compared to a normal spot trading.

[jaberwock]

At the same price or in a same price range, resistance and support will change its role with time. At some point of time, a price is a strong resistance but at another point of time, it will become a strong support.

To deal with resistances and supports, you must know it and in action you must not bind yourself with an idea like that resistance is strong and can not be broken out, that support is strong and price will not be dumped under it. If you have such controversial thinking and belief, you will make bad trading positions and if you use leverage, Futures trading, you will be liquidated.

In the cryptocurrency market, anything is possible here so it's important to have a well-detailed plan so that we can prepare for every possibilities that can come. It's also important to have a clear mind so that we can we can do a proper action or we can decide easily. Beliefs such as superstitious can't do anything on here.

There are times that we can get a correct trade but it does not mean that our beliefs are working. In crypto trading, all we need here is knowledge in order for us to perform better. More if we will do those types of trades you mentioned there because all of them are very risky when compared to a normal spot trading.

That is a very difficult one to manage but it is also a true one as well. Most people ignore that fact but the reality is that if we are ready for anything to happen then we are going to be doing fine. I believe that we are going to end up with a good result if we are ready for anything to go well, that is not really unlikely for it to happen and we should be doing something that would make sense.

I hope that people could end up with a good result one way or another but that doesn't mean that we are not going to end up with a profit. Hopefully people would end up with a good result, it shouldn't really be something impossible to get ready for anything, it may take time but if you get ready for long enough, you can arrange something good.

[gabbie2010]

Resistance are barriers and places where you encounter selling pressure which can lead to a reversal or a range before breakout. In the financial market resistance happens when the supply of currency, commodity, instrument, crypto etc. is higher than the demand.

Supports are places where you find buying interest. The inverse of Resistance.

I don't usually trade a bounce off at the Support or Resistance because of fear of price breakout though there are some noticeable candlestick patterns like exhaustion candle which usually indicate a price reversal at the support or Resistance, however from my view point in term of trading with Support and Resistance only I mark and draw the line on higher timeframe thereafter flipped to lower time frame and watchout for a price breakout from the  support or Resistance and watch for the price reversal or retouch of the same zone that is Support turned Resistance or Resistance turned Support and waited for a confirmation candlestick that indicates price continuation after the retouch of that zone.

[Peanutswar]

Trading with the help of support and resistance is ideal this helps to identify what is the next price action and behavior of the market just jeep trading inside the market price of these two it's just still identifying what is the next move just keeping a sideways price movement. But once the market breaks the imaginary lines of those there's change as always happens could be a bounce back or another pump or dump.
As a long-term holder seeking for a higher timeframe the test stage of the support and resistance can easily identify we are in crypto market if you go for a short term trading market is so volatile.

[BlackBoss_]

Trading with the help of support and resistance is ideal this helps to identify what is the next price action and behavior of the market just jeep trading inside the market price of these two it's just still identifying what is the next move just keeping a sideways price movement. But once the market breaks the imaginary lines of those there's change as always happens could be a bounce back or another pump or dump.

You can not use resistances and supports to identify next price movements and price of Bitcoin, it is impossible.

I use it differently and I consider resistances and supports (strong ones) as very risky areas where market will have big changes so when I see price is fluctuating around strong resistances or strong supports, I will close my current open positions and wait. This way, I can miss chance to get profit but I will not lose any money to the market or will not be liquidated by exchanges.

Market is here and chances will come in future, I don't see why I should take risk to bet on next market movement around resistance or support.

[tvplus006]

You can not use resistances and supports to identify next price movements and price of Bitcoin, it is impossible.

I use it differently and I consider resistances and supports (strong ones) as very risky areas where market will have big changes so when I see price is fluctuating around strong resistances or strong supports, I will close my current open positions and wait. This way, I can miss chance to get profit but I will not lose any money to the market or will not be liquidated by exchanges.

Market is here and chances will come in future, I don't see why I should take risk to bet on next market movement around resistance or support.

Your deposit will always be safe and will not be liquidated only if you set a stop loss when opening an order. In this case, you can try to open a short position from the resistance level by setting a stop loss above it, and vice versa, open a long position from the support level by setting a stop loss below the support level.