What are support and resistance in trading?

Support and resistance are key concepts in trading that refer to specific price levels where the market tends to pause or reverse. Support is a price level where buying interest is strong enough to prevent the price from falling further, while resistance is a level where selling interest prevents the price from rising further. Understanding these levels helps traders make informed decisions about entry and exit points.

How do I draw support and resistance levels?

To draw support and resistance levels, identify recent price highs and lows on the chart. Support levels are drawn at previous lows where the price has bounced back, and resistance levels are drawn at previous highs where the price has reversed downward. These levels can be confirmed by multiple touches, indicating strong areas of supply and demand.

What is the trading range and how does it relate to support and resistance?

The trading range refers to the price movement between support and resistance levels over a certain period. It represents the zone where the asset's price fluctuates, and traders often use this range to identify potential breakout or reversal points. Recognizing the trading range helps in developing effective trading strategies based on support and resistance.

What Are Support And Resistance? (Trading Strategy Explained)

TIMESTAMPS: 0:00 Why are support and resistance in trading 0:12 How to draw support and resistance 3:23 The trading range 6:12 Our trading levels 7:16 Support and resistance trading strategy 1 9:28 Support and resistance trading strategy 2

What are support and resistance – how to trade
Bybit $30,000 Bonus: https://bit.ly/Bybit-ZG
My Top Exchange (No US/UK)

MoneyZG Crypto Investor Course: https://moneyzg.academy
My Ultimate Crypto Investing Guide & Community

Bitget $8,000 Bonus: https://bit.ly/Bitget-ZG
Good On-Ramps & Trading (No US)

FOLLOW ME:
X: https://bit.ly/Twitter-ZG
Instagram: https://bit.ly/Instagram-ZG
TikTok: https://www.tiktok.com/@moneyzg

TIMESTAMPS:
0:00 Why are support and resistance in trading
0:12 How to draw support and resistance
3:23 The trading range
6:12 Our trading levels
7:16 Support and resistance trading strategy 1
9:28 Support and resistance trading strategy 2

USEFUL VIDEOS:
Bybit: https://youtu.be/L7_LjF1YsKw
Binance: https://youtu.be/FLaIOD9uGSg
Bitget: https://youtu.be/jycwF-_K7tk
Apex DeX: https://youtu.be/o4qFIiT7cCQ

This video is for entertainment purposes only. It is not financial advice and is not an endorsement of any provider, product, asset or service. Crypto is high risk, you can lose your money. Links above include affiliate commission or referrals. I’m part of an affiliate network and I receive compensation from partnering websites. Crypto content or offers are not intended for UK residents. Do NOT trade products that are unsuitable or not allowed in your jurisdiction.

What are Support and Resistance? (Trading Strategy Explained)

Related Content

Related Content

Related posts