#CryptoCharts101

Mastering Support & Resistance — The Right Way for Beginners 📊🧠

“I drew support, but price just blasted through…”

“Is that resistance or just a random scribble?”

Let’s fix that by building real S/R zones that hold—and help you profit 🧲

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🧠 What S/R Zones Really Are

Support: A price area where buyers often step in, causing a bounce.

Resistance: A level where sellers overwhelm buyers, leading to reversals.

⚠️ These are zones, not single lines—areas where big players place orders .

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🔍 How to Identify Strong S/R Zones

✅ Step 1: Pick Higher Timeframes (4H or 1H)

Higher timeframes yield more reliable S/R levels—lower timeframes are too noisy .

✅ Step 2: Look Left on the Chart

Scan backwards to find:

Recent swing highs/lows

Areas where price stalled or reversed 3+ times—these have real significance .

✅ Step 3: Draw Zones (Not Lines)

Use rectangles to highlight the entire area (bodies + wicks), with a ~1–2% buffer to accommodate false breaks and liquidity spikes .

✅ Step 4: Confirm with Volume & Price Action

Watch for volume spikes when price hits the zone—this indicates institutional interest .

Look for long wicks and quick reversals—they signal strong reactions .

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🎯 How to Trade with These Zones

📌 Long (Buying Support)

1. Price enters the support zone.

2. Wait for evidence (e.g., wick + bullish engulfing).

3. Enter long after confirmation.

4. Place stop-loss just below the zone.

5. Set take-profit at the next resistance zone.

📌 Short (Selling Resistance)

1. Price approaches the resistance zone.

2. Wait for a bearish reaction.

3. Enter short with confirmation.

4. Stop-loss just above the zone.

5. Take-profit at the next support area.

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⚠️ Common Beginner Mistakes

Plotting too many levels—stick to 2–3 solid zones .

Entering too early—always wait for proof of reaction.

Placing stops too close—wicks will get you stopped out.

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🧠 Bonus: S/R Role Flips

When a broken resistance acts as support—or vice versa—it signals a strong continuation.