Trading is not gambling; it is the art of reading the language of prices. If you do not know how to identify support and resistance levels, you are simply trading with your eyes closed in a turbulent market!
💡 Why should you understand support and resistance?
Support and resistance are the "map" that guides you to the locations of strong "buyers" and "sellers". Understanding them means you know when to enter and when to exit wisely.
🚨 3 steps to track whale movements on the chart:
1️⃣ Identify support areas: Look for the areas where the price has strongly bounced upwards in the past. This is the "solid ground" where "buyers" intervene to prevent the price from falling. Buying there is the smartest option.
2️⃣ Identify resistance areas: Look for the areas where the price has struggled to break through and has fallen multiple times. This is the "ceiling" that "sellers" strongly defend. Selling before it is the best option.
3️⃣ Confirm the breakout: Don't rush to enter on the first attempt at a breakout. Always wait for a complete candle close (for example, 4 hours) above the resistance level, then look for a retest as evidence that the trend has indeed changed upwards.
🛡️ Trader's shield:
"Don't rely on luck in making your financial decisions. Learn how to read the chart clearly, as support and resistance are your magic keys to achieving profits and avoiding traps."
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