Support and resistance levels for Bitcoin 17 May 2022
BYBIT:BTCUSDThese are the most Current Daily, Weekly and Monthly Levels for Bitcoin.
Support and resistance Definition (quoted from Investopedia.com)
The concepts of trading level support and resistance are undoubtedly two of the most highly discussed attributes of technical analysis. Part of analyzing chart patterns, these terms are used by traders to refer to price levels on charts that tend to act as barriers, preventing the price of an asset from getting pushed in a certain direction.
At first, the explanation and idea behind identifying these levels seem easy, but as you'll find out, support and resistance can come in various forms, and the concept is more difficult to master than it first appears.
Key Takeaways
Technical analysts use support and resistance levels to identify price points on a chart where the probabilities favor a pause or reversal of a prevailing trend.
Support occurs where a downtrend is expected to pause due to a concentration of demand.
Resistance occurs where an uptrend is expected to pause temporarily, due to a concentration of supply.
Market psychology plays a major role as traders and investors remember the past and react to changing conditions to anticipate future market movement.
Support and resistance areas can be identified on charts using trendlines and moving averages.
(end of quote)
Trading based on these levels, I would suggest entering trades based on a sign of strength (Long) or weakness (short) at these levels.
Never use Levels on their own, but enter trades based on confluence - i.e. Chart patterns, order flow, indicators, market structure
Support and resistance Definition (quoted from Investopedia.com)
The concepts of trading level support and resistance are undoubtedly two of the most highly discussed attributes of technical analysis. Part of analyzing chart patterns, these terms are used by traders to refer to price levels on charts that tend to act as barriers, preventing the price of an asset from getting pushed in a certain direction.
At first, the explanation and idea behind identifying these levels seem easy, but as you'll find out, support and resistance can come in various forms, and the concept is more difficult to master than it first appears.
Key Takeaways
Technical analysts use support and resistance levels to identify price points on a chart where the probabilities favor a pause or reversal of a prevailing trend.
Support occurs where a downtrend is expected to pause due to a concentration of demand.
Resistance occurs where an uptrend is expected to pause temporarily, due to a concentration of supply.
Market psychology plays a major role as traders and investors remember the past and react to changing conditions to anticipate future market movement.
Support and resistance areas can be identified on charts using trendlines and moving averages.
(end of quote)
Trading based on these levels, I would suggest entering trades based on a sign of strength (Long) or weakness (short) at these levels.
Never use Levels on their own, but enter trades based on confluence - i.e. Chart patterns, order flow, indicators, market structure
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