📌 If you are new to trading, you have definitely heard terms like "support" and "resistance"... but what do they mean?
In this article, I will explain simply how you can use them in buying and selling decisions 👇
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🟩 First: What is support?
> Support is a price level where the price stops after falling, as if it is "solid ground" that the price cannot easily break below.
🔹 Example:
If a coin was at 1.00 dollars, and every time it drops to 0.85 it bounces back up, then 0.85 is called a support level.
🧠 Why?
Because traders start buying heavily at this level, so the price begins to rise again.
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🟥 Second: What is resistance?
> Resistance is the opposite of support. It is a price level that stands against the price when it rises, preventing it from continuing to climb easily.
🔹 Example:
If a coin reaches 1.20 dollars every time and then falls back, then 1.20 is the resistance level.
🧠 Why?
Because many people sell there and take their profits, the price cannot continue upwards easily.
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🔁 The relationship between support and resistance:
Sometimes when the price breaks resistance and goes above it, it turns into new support.
And vice versa... If support is broken and the price falls below it, it might turn into resistance in the future.
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📊 So how do I use them in trading?
✅ Buy close to support and sell close to resistance.
❌ Don't enter a trade before determining where support and resistance are.
🔄 Use charts (like TradingView) to draw these levels yourself.
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🔚 Summary:
> Support = Price ground
Resistance = Price ceiling
If you understand them well, your decisions will be stronger and your risk will be lower 🙌
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🔖 Would you like me to explain in the next article:
How to determine support and resistance by yourself on the chart?
What are the best entry strategies when breaking resistance?
Write your opinion in the comments 👇
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