Bitcoin: 3 Ways To Spot Resistance (4 Beginners)
Updated
Let me show you a quick way to find resistance levels, which are also known as targets when you are looking to sell for profits when trading a coin.
Above you have the Bitcoin chart with 1 candle per 24 hours; Daily time frame.
Bitcoin price is likely to stop at the next resistance point. Note the word "likely", because there is always the chance of the price going higher and breaking more than one resistance. This is of course an example based on an up move.
Let's get to it:
1) Indicator TD Sequential: My indicator is telling me that there is resistance at the $7958 price.
2) EMA indicator: EMA200 shows resistance at $7862.
3) Fibonacci Tool: Based on the April bull move, Fib numbers show resistance at $7901.
If you go by what these indicators are telling you, you could easily say that Bitcoin will face resistance in the $7850 - $8000 range.
There are many more ways to find resistance points and also tools that can be used for this same purpose, but these are very easy to work with and can help you become better at making the right choices when trading.
The same tools can be used to find support levels.
Once you have resistance and support levels, it becomes a lot easier to trade or try and figure out what might come next.
I hope you enjoy this post... My deepest love and gratitude to you...
Namaste.
Above you have the Bitcoin chart with 1 candle per 24 hours; Daily time frame.
Bitcoin price is likely to stop at the next resistance point. Note the word "likely", because there is always the chance of the price going higher and breaking more than one resistance. This is of course an example based on an up move.
Let's get to it:
1) Indicator TD Sequential: My indicator is telling me that there is resistance at the $7958 price.
2) EMA indicator: EMA200 shows resistance at $7862.
3) Fibonacci Tool: Based on the April bull move, Fib numbers show resistance at $7901.
If you go by what these indicators are telling you, you could easily say that Bitcoin will face resistance in the $7850 - $8000 range.
There are many more ways to find resistance points and also tools that can be used for this same purpose, but these are very easy to work with and can help you become better at making the right choices when trading.
The same tools can be used to find support levels.
Once you have resistance and support levels, it becomes a lot easier to trade or try and figure out what might come next.
I hope you enjoy this post... My deepest love and gratitude to you...
Namaste.
Note
4) Trendlines can also help you find support and resistance levels.In the chart above look at the purple, green and red dotted lines. When the price of Bitcoin changes, up or down, it can find support when touching these lines.
"
"What is a 'Trendline'
"A trendline is a line drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trendlines are a visual representation of support and resistance in any timeframe. Trendlines are used to show direction and speed of price, and also describe patterns during periods of price contraction."
Source: investopedia.com
Note
5) Moving Average: This is an indicator that can also help you come up with resistance and support levels (mentioned at #3).Depending on the timeframe you use for your chart, you can find short term, mid and long term resistance/support.
You can use additional tools to confirm these...
Here is a quick example:
4H:
1W:
(Notice on the weekly chart the EMA200 (brown) is at $3744, EMA100 (blue) $5695, etc. and compare to the 4h chart...)
I use mainly EMA and SMA as indicators for moving averages, there are many variants and options available for you. Pick the one that you like most, get used to it and start practicing.
Note
Please like, share and comment for more 'beginners' tips. :)Your support is highly appreciated.
I LOVE YOU!
Namaste.
Trade closed manually
Here you can see how Bitcoin went up to $7814, which were our indicators and tools said we would face resistance: So you can see how these tools work...
See you at the next one.
Note
Article for beginners... I hope you enjoy it!Read "TRADING TIPS FOR BEGINNERS" on the second part of the post:
🔝 Daily Cryptocurrency Technical Analysis
followalan.com
🔥 PREMIUM Trade-Numbers (6-In-1 Offer Now Live!)
lamatrades.com (Since 2017)
🚨 Free PREMIUM Trade-Numbers
alansantanatrades.com
followalan.com
🔥 PREMIUM Trade-Numbers (6-In-1 Offer Now Live!)
lamatrades.com (Since 2017)
🚨 Free PREMIUM Trade-Numbers
alansantanatrades.com
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.