In the cryptocurrency world for many years, I have summarized several practical skills for support levels to help you achieve stable profits!
1. Upward Trend: The Long-Short Game of Support Levels
✅ Effective Support: During a pullback, the bearish candlestick is weaker than the bullish candlestick, volume decreases near the support level, and after a bullish engulfing, the price rebounds. At this point, the support is effective, and you can add positions at lower prices.
❌ Trend Reversal: Frequent bearish candlesticks, strong bearish sentiment, and even a brief rebound still break below the support line, indicating the end of the upward trend, and decisive exit is necessary.
2. Consolidation Phase: The True and False Breakthroughs of Support Levels
✅ Confirmed Effective: After consolidation near the support level, a long bullish candlestick breaks through, confirming the effectiveness of the support, and you can follow up with long positions.
❌ Breakdown: After consolidation, a long bearish candlestick breaks below the support, triggering panic selling, indicating that the price will continue to decline, and you should immediately cut losses.
3. Key Breakout: Signals that Determine Success or Failure
🔻 Trend Reversal: The price breaks below the support line, shifting from upward to downward. In a major trend, breaking below a secondary support indicates the original trend has ended.
🔺 Bottom Fishing Opportunity: If the support has not been broken and there is a strong rebound with high trading volume, you can buy; if there is no accompanying trading volume, exit early to avoid being trapped.
$BTC
