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Resistence

XRP/USDT Review 1DayInterval Hello everyone, I invite you to review the BNB chart on a one-day timeframe. As we can see after defining the uptrend line, the price has fallen slightly below, but remains close to this line. Let's start by marking the support areas for the price and we see that first we have a support zone from $0.45 to $0.42, which is holding the price so far, but if the zone is broken, the next support is at $0.39. Looking the other way, we can similarly determine the places of resistance that the price has to face. And here we see that the price is currently bouncing off the $0.48 resistance. Then we can mark a resistance zone from $0.51 to $0.52, and a second very strong zone from $0.54 to $0.57. The CHOP index indicates that a lot of energy has been collected, the MACD is struggling to return to the uptrend, while the RSI has a further rebound, which may positively affect the change of the price direction to an upward one.
by cryptodailyuk
⭐️ Support And Resistance | Definition & Strategies ⭐️Support and resistance levels are fundamental aspects of trading, holding significant importance in various financial markets, including the dynamic forex market. These critical levels signify specific price zones on a chart where buyers and sellers actively participate, exerting influence on market movements. Consequently, comprehending the impact of support and resistance levels is crucial for traders seeking to make well-informed decisions and capitalize on trading opportunities. This comprehensive article aims to explore the significance of support and resistance levels, delve into methods of correctly identifying and drawing them, outline effective trading strategies, and present techniques for filtering out false signals. Armed with a comprehensive understanding of these concepts, traders can elevate their trading proficiency, potentially leading to improved profitability and success in the forex market. Support and resistance levels act as psychological barriers, reflecting the collective behavior of market participants. Support represents a price level where buying pressure tends to overcome selling pressure, causing prices to reverse direction and rise. On the other hand, resistance signifies a price level where selling pressure typically surpasses buying pressure, leading to price reversals and declines. These levels are formed based on previous market reactions, such as historical highs and lows, trendlines, and chart patterns. Traders consider support and resistance levels as critical reference points, as they help identify potential entry and exit points, define risk and reward ratios, and anticipate market reversals or continuations. To accurately identify and draw support and resistance levels, traders employ various techniques and tools. One popular method is the swing high and swing low approach. Traders identify significant peaks (swing highs) and troughs (swing lows) on a price chart and draw horizontal lines connecting them. These lines act as reference levels, indicating potential areas of support and resistance. Additionally, trendlines can be utilized to identify dynamic support and resistance levels, providing insights into the overall market trend. Once support and resistance levels are identified, traders can implement effective trading strategies to capitalize on these market dynamics. One common approach is to buy at support and sell at resistance. When prices approach a support level, traders anticipate a price bounce and look for buying opportunities. Conversely, when prices approach a resistance level, traders expect a potential price reversal and consider selling or shorting the asset. This strategy allows traders to enter trades with favorable risk-reward ratios, aiming to capture price movements away from support or resistance levels. What is it exactly a Support and Resistance ? Support and resistance levels represent crucial price clusters where buyers and sellers engage in competition. A support level denotes a specific price point where the demand for an asset becomes sufficiently strong to halt further declines in its value. As the price approaches the support level, it is reasonable to expect an increase in buyer activity and a decrease in seller activity, resulting in higher buying volume and reduced selling volume. When the price reaches the support line, there is a high likelihood of a rebound occurring, as this line establishes a significant psychological low within the market. Support levels essentially "support" the price, preventing it from continuing its downward trajectory. It's important to note that support and resistance levels are not fixed points. Prices may approach these levels with slight deviations, either falling just short of reaching them or temporarily dipping slightly below the line. If the price successfully breaks through the support line and proceeds to decline, it undergoes a transformation and assumes the role of a resistance level. Use of the Resistances on Bearish trend. Use of The Supports on Bullish trend. Use of Support and Resistance on Sideways / Range market. Resistance levels are the opposite of support. These marks appear when supply becomes equal to demand. The logic here is that as the resistance level is approached, the volume of buyers decreases, while the volume of sellers gradually increases. At the point where the balance is reached, the price will stop, and further growth will stop. The resistance level is always above the price. The name also speaks for itself. This mark is as if restraining the price from further growth by resisting it. How To Trade On Support And Resistance Levels: Trading based on support and resistance levels is a popular approach within the forex trading community. These levels represent specific areas on a price chart where the market tends to reverse or consolidate, presenting potential opportunities for buying or selling. To effectively trade support and resistance levels, follow these steps: - Identify significant support and resistance levels: Analyze historical price data to locate areas where the price has previously reversed or encountered difficulty in breaking through. This can be done by observing swing highs and swing lows, trendlines, Fibonacci retracement levels, or horizontal price levels. - Mark the identified levels on your chart: Once you have identified key support and resistance levels, mark them on your chart. This visual representation helps you recognize the areas where potential trading opportunities may arise. - Monitor price reactions: Keep a close eye on the price as it approaches the support or resistance levels. Look for indications of a potential reversal or a breakout from the level. These indications can include candlestick patterns, chart patterns, or the signals from indicators that suggest a shift in market momentum. - Confirm with additional indicators: While support and resistance levels can be traded on their own, it can be beneficial to use supplementary indicators or tools to validate your trading decisions. For instance, you can employ oscillators like the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD) to assess overbought or oversold conditions. - Define your entry and exit points: Once you have identified a potential trading opportunity based on support and resistance levels, establish your entry point, determine a suitable Stop Loss level (to limit potential losses), and set a take-profit level (to secure profits). Technical analysis, such as considering the distance between the entry point and the nearest support or resistance level, can help determine these levels. Manage your risk: Proper risk management is crucial when trading support and resistance levels. Consider implementing appropriate position sizing, setting Stop Loss orders to protect against excessive losses, and maintaining a favorable risk-to-reward ratio. This approach ensures that even if some trades are unsuccessful, your overall trading strategy remains profitable. Practice and refine your strategy: Mastery of support and resistance trading comes with practice and experience. Begin by testing your approach on a demo account or using backtesting software to evaluate its performance based on historical data. Refine your strategy based on your observations and gradually build your confidence. Support And Resistance Trading Strategies Support and resistance trading strategies offer various approaches to capitalize on price dynamics around these key levels. Here are several common strategies employed by traders: Breakout Strategy: This strategy involves trading the breakout of support and resistance levels. When the price surpasses a resistance level or falls below a support level, it indicates a potential continuation of the prevailing trend. Traders can initiate a long position after a resistance breakout or a short position following a support breakdown. Setting a Stop Loss order below the breakout level helps manage risk. Bounce Strategy: With the bounce strategy, traders anticipate price bounces off support and resistance levels. When the price approaches a support level, traders can enter long positions, placing a Stop Loss order below the support level. Conversely, when the price nears a resistance level, traders can go short, setting a Stop Loss order above the resistance level. The expectation is that the price will reverse from these levels, presenting profitable trading opportunities. Range Trading: Range trading occurs when the price fluctuates between a support and resistance level. Traders can exploit this by buying near the support level and selling near the resistance level. To enhance range trading, traders identify the range boundaries and employ technical indicators such as oscillators to assess overbought and oversold conditions within the range. Pullback Strategy: In this strategy, traders wait for the price to retrace to a support or resistance level after a breakout. The idea is to enter trades in the direction of the breakout once the pullback is complete. For instance, if the price breaks above a resistance level, traders wait for a pullback to the support-turned-resistance level before initiating a long position. Confluence Strategy: This strategy combines support and resistance levels with other technical indicators or chart patterns to increase trading probabilities. Traders search for instances where multiple factors align, such as a support level coinciding with a trendline or a Fibonacci retracement level. This convergence of factors strengthens the signal for potential trading opportunities. How To Filter False Signals ? Filtering out false signals when trading support and resistance levels can indeed be challenging. However, there are several strategies you can employ to increase your accuracy and minimize the impact of false signals. Here are some helpful tips: - Confirm with multiple indicators: Relying on a single indicator can lead to false readings. To enhance the reliability of your analysis, consider using multiple indicators that complement each other. Look for indicators that align with your support and resistance levels, such as trendlines, moving averages, or oscillators. When multiple indicators converge and provide consistent signals, it strengthens the confirmation for potential trading opportunities. - Analyze price action: Study how the price behaves around support and resistance levels. Look for clear and decisive price movements, such as strong breakouts or bounces, accompanied by significant volume. False signals often exhibit choppy or erratic price action, lacking conviction. By analyzing price action, you can gain insights into the strength or weakness of support and resistance levels. - Consider multiple time frames: Analyze support and resistance levels across different time frames. Levels that hold on higher time frames carry more significance. Focus on levels that align and hold on multiple time frames, as they are more likely to attract market participants and generate reliable signals. The confluence of levels across different time frames increases the validity of the signals. - Monitor the market context: Consider the broader market context, including the overall trend, market sentiment, and significant news or events. Support or resistance levels that align with the prevailing trend and market sentiment are more likely to generate valid signals. Conversely, levels that conflict with the trend or market sentiment may produce false signals or indicate potential reversal points. Understanding the market context can help you filter out false signals. - Be patient and selective: Avoid jumping into trades based on every touch of a support or resistance level. Exercise patience and wait for strong confirmation signals before entering a trade. Look for price rejections, candlestick patterns, or breaks with high volume and momentum. Being patient and selective in your trades increases the probability of accurate signals and minimizes the impact of false signals on your trading. - Implement proper risk management: Effective risk management is crucial to mitigating the impact of false signals. Set appropriate Stop Loss orders to limit potential losses if a trade goes against you. Consider using Trailing Stops to protect profits as the trade moves in your favor. By managing your risk properly, you can protect your trading capital and minimize the adverse effects of false signals on your overall trading performance. By incorporating these strategies into your trading approach, you can enhance your ability to filter out false signals and increase your accuracy when trading support and resistance levels. Remember to practice, adapt to changing market conditions, and continuously refine your trading strategy. Conclusion : Support and resistance levels are crucial elements in the forex market, exerting a significant influence on price movements and market dynamics. These levels represent areas where supply and demand imbalances occur, leading to trend reversals, consolidations, breakouts, and impacting market psychology. Correctly identifying and drawing support and resistance levels is vital for traders as it helps them identify potential buying and selling opportunities. Traders can utilize various trading strategies to capitalize on these levels. Breakout strategies involve trading the breakouts of support or resistance levels, while bounce strategies focus on trading price bounces off these levels. Range trading strategies take advantage of price oscillations within established support and resistance boundaries, while pullback strategies involve trading in the direction of the breakout after a price retracement. However, it's essential to filter out false signals to avoid erroneous trading decisions. This can be achieved by using multiple indicators that complement each other and provide confirmation signals. Analyzing price action helps in understanding the strength or weakness of support and resistance levels. Considering different time frames allows traders to identify levels that hold significance across various intervals. Assessing the broader market context, including the overall trend and market sentiment, helps to avoid false signals that conflict with the prevailing market conditions. Additionally, exercising patience and selectivity when entering trades ensures that traders wait for strong confirmation signals before taking action. Implementing proper risk management techniques, such as setting appropriate Stop Loss orders and employing position sizing strategies, protects traders from excessive losses and manages risk effectively. By incorporating these principles into their trading approach, traders can navigate the complexities of support and resistance levels and increase their chances of success in the forex market.
Education
by FOREXN1
18
BNB Review 4HInterval Looking at BNB vs USDT, also on a four-hour timeframe. First of all, using the blue lines, we can mark the downtrend channel from which the price went up. As we can see from the unfolding of the fib based trend extension tool, the price stays just above the first support zone from $247 to $242, however, when the price falls below this zone, we can see a drop around the second strong zone from $234 to $229. Looking the other way, we can also mark the places where the price should encounter resistance on the way to increases. And here we have the first very strong resistance at the price of $ 253, only when the price positively tests it should try to attack the level of $ 261. When we turn on the EMA Cross 10 and 30, we can see the confirmation of the uptrend. The CHOP index indicates that we have a lot of energy for the next move. The MACD indicator struggles to maintain a local uptrend. On the other hand, on the RSI we are moving in the upper limit, but we have some space for the price to try to attack the first resistance.
by cryptodailyuk
ETH/USDT Short-Term 3.07.2023Hello everyone, let's look at the BTC to USDT chart on a 4-hour time frame. As you can see, the price has broken out of the local downtrend line. After unfolding the trend based fib extension grid, we see that there is a first support zone from $1953 to $1946 ahead of the price, and then we have a second strong support zone from $1928 to $1914. Now let's move on to the resistances and we see that the price did not stay above the first resistance zone from $1961 to $1970, it was rejected, further resistance is at $1979 and the third resistance is at $1993. Looking at the CHOP indicator, we see that the energy is gaining strength, the MACD is trying to maintain the local uptrend, and the RSI has rebounded from the upper limit of the range, which may give a moment of rebound for the price.
by cryptodailyuk
FTM/USDT 4H ReviewHello everyone, let's look at the FTM to USDT chart on a 4-hour timeframe. As you can see, the price has broken out of the local downtrend line. Let's start with the support line and as you can see the first significant support is at $0.25, then we have the second support at $0.20 and then the third support at $0.16. Looking the other way, we can determine a significant resistance zone that the price has to face from $0.35 to $0.39, only when we move up from this zone, the price can move towards resistance at $0.46. The CHOP indicator indicates the ending energy, which gives small price movements, the MACD tries to return to the local uptrend, while the RSI after a visible rebound, we have an attempt to return to the uptrend.
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by cryptodailyuk
BTCUSDT 4H Interval ReviewHello everyone, let's look at the BTC to USDT chart on a 4-hour timeframe. As you can see, the price is trying to break the local downtrend line. After unfolding the trend based fib extension grid, we can see a support zone from $30,241 to $29,981, however, when the price falls below this zone, we still have support at the golden fib point, at $29,555. Now let's move from the resistance line, as you can see the price is fighting a very strong resistance at $30578, while further it will move towards an also very strong resistance at $31240. Looking at the CHOP indicator, we see that there is still energy for the move, the MACD, despite the price increase, remains in the local downtrend, and the RSI has a slight increase, which may give room for the price to grow a little more.
by cryptodailyuk
DOT 4Hinterval ReviewAs the third, we will check the DOT chart on the four-hour interval. As we can see, the price is above the uptrend line marked in yellow. Let's start by marking the price support spots and we see that we first have support at $4.84 but if the price goes lower then we have another support at $4.72 and then we have a very strong support zone at $4.60 $ to $4.42. Looking the other way, we can similarly determine the places of resistance that the price has to face. And here we see that currently DOT does not have enough strength to break the resistance zone from $5.04 to $5.27, but when this happens, we have another very strong resistance at $5.56, only after a positive test of this resistance we will be able to see a further price increase. When we turn on the EMA Cross 200, we will see an attempt to return the price to a strong uptrend, but at the moment the price is fighting to maintain this trend. The CHOP index indicates that there is still a lot of energy to be used, the MACD indicates a return to the local downtrend, while the RSI is in the process of recovering and we are approaching the lower end of the range, which may indicate the imminent end of the current recovery.
by cryptodailyuk
BNB/USDT Review 4hinterval - Resistance and SupportHello everyone, I invite you to review the chart of BNB in pair to USDT, on a four-hour interval. In the first place, using the yellow line, we can mark the uptrend line that did not hold the price, while currently, using the blue lines, we can mark the downtrend channel from which the price goes sideways. Now let's move on to marking the places of support. We will use the Fib Retracement tool to mark the supports, and as you can see, we have the first very strong support at the price of $ 234.4, it is equal to 0.618 Fib, the so-called golden fibon point, the second support at the price of $ 228.2, and then we can see a decrease around 220 .1$, which is the location of the last price low. Looking the other way, we can also mark the places where the price should encounter resistance on the way to increases. And here we see that the price has no strength to break through the resistance at $238.3, however when it does, it still needs to break through the strong resistance from $243 to $249 for the price to move further towards the resistance at $257.4. Please pay attention to the CHOP Index, which indicates that there is a lot of energy to move. The MACD indicator maintains a local downtrend. On the other hand, the RSI is moving around the lower border, which may give the price an increase in the coming hours.
by cryptodailyuk
BTC Short-Term 1HIntervalHello everyone, let's look at the BTC to USDT chart on a 1-hour timeframe. As you can see, the price is moving below the local downtrend line. Let's start with setting the support for the next few hours and here we first have a support zone from $30170 to $30043, which held the price, but then we have a second support zone from $29940 to $29837. Now let's move on to the resistance, as you can see the first resistance is $30253, if it breaks down the next resistance will be $30412 and then we have a strong resistance zone from $30546 to $30674. Looking at the CHOP indicator, we see that there is still some energy left, the MACD indicates a continuation in the downtrend, while the RSI is moving at the lower limit, however, small movements can bring the price to the second support zone.
by cryptodailyuk
5
LTC/USDT 4HInterval Review support and resistanceHello everyone, let's look at the LTC to USDT chart on a 4-hour timeframe. As you can see, the price is moving above the local uptrend line. Let's start with the support line and as you can see the first support in the near future is $87.49, if the support is broken then the next support is $83.42 and then we have a strong support zone from $80 to $77. Now let's move to the resistance line, as you can see the first resistance is $91.28, if you manage to break it, the next resistance will be $94.72 and $97.52. Looking at the CHOP indicator, we see that there is a lot of energy for the upcoming move, the MACD confirms the local downtrend, while the RSI shows a visible rebound, which may give room for future increases.
by cryptodailyuk
GBPJPY - Continue to rise? or beginning of the fall? 26/06/2023 - 1 Hour TF GBPJPY has been in a Bullish trend for quite a signifcant amount of time consitenly making Higher Highs as well as Lower Lows. Supported on the Weekly, Monthly, Daily & Hourly timeframes. Despite recent Bearish breaks we are looking for potential buys as we kick of the trading week. Recent news articles also points to a potential Bullish run. Raising interest rates also supports the idea of a longer Looking to enter a trade after price has broken below area of support, & it has come back to close above zone a 1:1 or higher win rate ratio. DISCLAIMER: All trades are just my own ideas and should not be taken as a signal. Follow me for more ideas. Happy Trading! Supreme Trading Society
Long
by SupremeTradingFX
1
SOL/USDT 4H Interval Review resistance and supportHello everyone, I invite you to review the SOL chart on a four-hour interval. As we can see, the price has broken the downtrend lines, while currently we will use the blue lines to mark the uptrend channel, from which the price also goes down. Let's start by marking the support spots for the price and we see that we first have support at $15.91, but if the price goes lower, we have another support at $15.32, then we have a third very strong support at $14.71 $. Looking the other way, we can similarly determine the places of resistance that the price has to face. And here we see that currently the price failed to break out of the resistance zone from $ 16.44 to $ 17.53. However, if it manages to break it, we still have a strong resistance at $18.68, when the price breaks it, it will move towards the resistance at $20.25. The CHOP index indicates that there is a lot of energy for the next move, the MACD indicates that we are moving in a local uptrend, while the RSI shows an ongoing rebound and we are approaching the point where the correction is often completed.
by cryptodailyuk
BTC 1D Interval ReviewWe will now move on to the BTC/USDT chart, also on a one-day timeframe. First of all, using the yellow line, we can mark the downtrend line from which the price went up, then, using the blue lines, we can mark the uptrend channel in which the price is currently moving. Now let's move on to marking the places of support. We will use the Fib Retracement tool to mark support, but here we will use support zones and we have the first zone in the range of $ 27725 to $ 25381, then there is a second strong zone from $ 23388 to $ 21513, while if the price fell lower we have a third very strong support zone from $18,934 to $15,418. Looking the other way, we can also mark the places where the price should encounter resistance on the way to increases. And here we have the first very strong resistance at the price of $ 31769, which so far has not been strong enough to overcome, the next resistance is at the price of $ 35578, and then the third resistance at the price of $ 41028. When we turn on the EMA Cross 200, we can see that it kept the price nicely in the uptrend. The CHOP index indicates that the energy has been used. The MACD indicator is in a strong uptrend. On the other hand, on the RSI we see a breakout of the upper limit and we currently have a slight rebound, but I expect a stronger rebound or a sideways trend with small price slides.
by cryptodailyuk
BTC.D Review 1DayIntervalHello everyone, I invite you to review the situation of BTC Dominance over the rest of the cryptocurrency market. At the beginning, we will use the blue lines to mark the downtrend channel, which after several attempts was able to exit upwards. Now, using the trend based fib extension tool, we can determine the places where dominance should encounter resistance. And here we see that we are facing a very strong resistance at 53.99%, but when it is overcome we can see a rapid increase to around 63.33%, which will give BTC a significant advantage over the rest of the market. Now we can move on to marking the places of support in the event of a correction. And here, in the first place, it is worth marking the support zone from 48.19% to $ 47.04, but when we fall below this zone, we can see a decrease to around 45.92%, and then to the second support zone from 44.27% by 42 .17%. Please pay attention to the CHOP index which indicates that most of the energy has been used, the MACD indicator confirms a strong uptrend, while on the RSI we crossed the upper limits of the range, which should give a moment of recovery or at least a temporary sideways trend with small pullbacks.
CRYPTOCAP:BTC.D
by cryptodailyuk
BTC/USDT 4HIntervalHello everyone, let's look at the BTC to USDT chart on a 4-hour timeframe. As you can see, the price has moved down from the local uptrend channel. Let's start with setting the support line and as you can see, the price is currently moving in the important support zone from $30,433 to $30,159, if the price falls below the zone, we can see a drop to the support area at $29,373. Now let's move on to the resistance line, as you can see we have the first resistance zone from $30696 to $30915 and then the price needs to break through the second zone from $31154 to $31468. Looking at the CHOP indicator, we see that there is a lot of energy to move, the MACD indicates the maintenance of the local downtrend, while the RSI shows a rebound, but there is still room for the price to go a little lower.
by cryptodailyuk