📊 Support and Resistance: Basics for Traders

If you are a beginner in trading, understanding support and resistance is key to successful chart analysis.

🟩 What is support?

-Support is a level below which the price does not fall. It's like a floor: when the price reaches this point, buyers start to buy the asset, and the price bounces back up.

Example:

-Bitcoin has fallen to $102,000 three times, and each time it bounced back — this is strong support.

🟥 What is resistance?

-Resistance is a level above which the price cannot break through. It's like a ceiling: when the price jumps up, it encounters sellers and bounces back down.

Example:

Ethereum has risen to $2600 twice, but did not go higher — this is a resistance zone.

↕ How do they work together?

-The price can move between support and resistance, like a ball between the floor and the ceiling (range).

🔄 What is important:

-Breaking resistance upwards = it becomes support.

-Breaking support downwards = it can become resistance.

🧠 How to use?

-Buy at support

-Sell at resistance

-Look at volumes and patterns for confirmation of a breakout

☕Tip:

Do not set levels "to the penny." These are ZONES, not precise lines.