Master this basic skill before anything else to find success. 📚

26 de set. de 2022

One of the first and most critical skill you must master - How to PROPERLY identify Support/Resistance Levels.

Once you learn how to properly identify these levels you can quickly understand what the trend is doing or where price could go next.

Follow these basic guidelines:

💎 You need 2 touch points, but 3+ are better. The more touch points, the more powerful the level
💎 Look for price rejection at the same level (resistance)
💎 Look for price being respected and held up at the same level (support)
💎 You can use wicks or bodies but bodies are more powerful
💎 Indicators, Oscillators and Trendlines can all act or be used as S/R
💎 Practice on a Higher Time frame before moving to lower time frames

Advanced Techniques:

💎 When S/R lines up with FIBS, becomes much more powerful
💎 Look at Swing Highs (SH) and Swing Lows (SL)
💎 Use Moving Averages to find Support/Resistance
💎 S/R is not always an exact point or number. It can be a zone.

📚 Test your self

1. Open a 3D Chart and find 3 levels of support
2. Find 3 levels of resistance
3. Study what price action did after breaking through or holding either support or resistance
4. Practice on 5 other coins from your watch list.
5. Add the 50MA to your chart. Study how price reacts when it holds support or resistance.

Bonus! Can you identify Support/Resistance on an indicator like the RSI?

Comment below if you would love to see more skills broken down.