triple bottom off the real resistance level
Surely you mean support?
No, I mean resistance
Ah, ok. I always noticed support was used for bids and buying, while resistance was used for asks and selling. Didn't know they were interchangeable, I'm kinda new to this technical analysis. Interesting stuff, though!
It's more your position and where you want it to go.
- If you want the price to go up: the ask wall is your resistance because until all of those ask orders are filled the price cannot rise. The buy wall is your support because as long as the bid wall exists the price will not drop below that.
- If you want the price to go down: The bid wall is your resistance as it's preventing the price from dropping, the ask wall is your support since the price will not go up until that wall dissolves.
Note: I personally think the bid/ask walls can be used as a minor indicator, but one shouldn't place too much weight or trust on them. Sometimes bid/ask walls are placed and the person who's placed them does not actually want to trade at the price the walls are at, but merely trying to scare the herd into panic selling or buying.