BitcoinEducation
Master this basic skill before anything else to find success. 📚
One of the first and most critical skill you must master - How to PROPERLY identify Support/Resistance Levels.
Once you learn how to properly identify these levels you can quickly understand what the trend is doing or where price could go next.
Follow these basic guidelines:
💎 You need 2 touch points, but 3+ are better. The more touch points, the more powerful the level
💎 Look for price rejection at the same level (resistance)
💎 Look for price being respected and held up at the same level (support)
💎 You can use wicks or bodies but bodies are more powerful
💎 Indicators, Oscillators and Trendlines can all act or be used as S/R
💎 Practice on a Higher Time frame before moving to lower time frames
Advanced Techniques:
💎 When S/R lines up with FIBS, becomes much more powerful
💎 Look at Swing Highs (SH) and Swing Lows (SL)
💎 Use Moving Averages to find Support/Resistance
💎 S/R is not always an exact point or number. It can be a zone.
📚 Test your self
1. Open a 3D Chart and find 3 levels of support
2. Find 3 levels of resistance
3. Study what price action did after breaking through or holding either support or resistance
4. Practice on 5 other coins from your watch list.
5. Add the 50MA to your chart. Study how price reacts when it holds support or resistance.
Bonus! Can you identify Support/Resistance on an indicator like the RSI?
Comment below if you would love to see more skills broken down.
Once you learn how to properly identify these levels you can quickly understand what the trend is doing or where price could go next.
Follow these basic guidelines:
💎 You need 2 touch points, but 3+ are better. The more touch points, the more powerful the level
💎 Look for price rejection at the same level (resistance)
💎 Look for price being respected and held up at the same level (support)
💎 You can use wicks or bodies but bodies are more powerful
💎 Indicators, Oscillators and Trendlines can all act or be used as S/R
💎 Practice on a Higher Time frame before moving to lower time frames
Advanced Techniques:
💎 When S/R lines up with FIBS, becomes much more powerful
💎 Look at Swing Highs (SH) and Swing Lows (SL)
💎 Use Moving Averages to find Support/Resistance
💎 S/R is not always an exact point or number. It can be a zone.
📚 Test your self
1. Open a 3D Chart and find 3 levels of support
2. Find 3 levels of resistance
3. Study what price action did after breaking through or holding either support or resistance
4. Practice on 5 other coins from your watch list.
5. Add the 50MA to your chart. Study how price reacts when it holds support or resistance.
Bonus! Can you identify Support/Resistance on an indicator like the RSI?
Comment below if you would love to see more skills broken down.
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