🧵 Thread #18: What are SUPPORTS and RESISTANCES in trading? 📈
Buddy! If you are just starting on Binance, understanding this can change your game. Let's go with the basics 👇
1️⃣ What is a SUPPORT?
It is a zone where the price tends to 'bounce' upwards.
Imagine it as a 'floor' that the price does not want to break.
Example: If BTC drops many times to 60,000 $ and rises again… that level is a support.
🔁 The more times it is respected, the stronger it is!
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2️⃣ And a RESISTANCE?
It is the opposite. It is like a 'ceiling' that the price cannot surpass.
Example: If ETH rises several times to 3,800 $ and drops again… that level is a resistance.
🧱 If it breaks strongly → it can turn into support.
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3️⃣ What is this for?
✅ It helps you to:
• Enter safe zones (buy near the support)
• Sell or take profits near resistances
• Avoid buying at highs
💡 It is not magic. It is market psychology → everyone looks at the same levels.
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4️⃣ How do I draw them on Binance?
📲 In the app or web, open the chart → select 'line' → mark the zones where the price bounces several times.
📌 Tip: Use timeframes like 1D or 4H to see clearer zones.
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5️⃣ Bonus: Breakout vs False Breakout
🔹 If the price breaks a resistance with a lot of volume → it can continue rising (watch out!).
🔹 But if it breaks and then drops again → it can be a false breakout. Don't get overconfident.
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💬 Do you want me to teach you how to combine supports/resistances with candlesticks?
Let me know and we will set it up in the next thread 🔥
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📌 Save this thread and review it every time you trade on Binance.
And if you liked it, give me a RT so more buddies can learn 💛
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