Success Strategies #5 - Recognising and trading Support and Resistance levels

in bitcoin •  11 months ago

Hi All,

As promised, I'd like to share further demonstration on the trading strategies and trade management strategies that have bought success to my trading.

Id like to begin with the most important aspect of trading as a whole, namely, Support/resistance.

  • Support and resistance are strong supply and demand ''lines in the sand'' that are specific prices on a certain financial instrument that are known from historical price movement to be a price that a large amount of buyers and sellers, institutional and private, will use to buy or sell a stock, index, Crypto-currency and other financial instruments.

These prices are more often than not, sequential. For example WHOLE ROUND NUMBERS, like $1-$2-$3 on small price stocks, and multiples on $10 or $100 for higher priced stocks. Of course, for Alt Crypto's, the round number would be in Sats not Dollars.

We also see numbers like 111 222 333 555 1111 and so on can be strong levels of this support resistance. With BTC $5000 $7500 and $10000 have all been very strong levels of support/resistance.

Below you can see an intensive video on the uses of support and resistance, how to recognise it and draw it yourself, how to trade using it, how to use it to manage trades you are already in, and to exit.

It also explains how to notice when a level of support resistance is weakened by constant hits of that support/resistance, which can indicate a break out of this level. That in itself can be used to trade, and this break out is what we know as a ''Flat To/bottom Breakout.


Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!