Beginner’s Guide Part 4

Basic Support & Resistance line (S&R)

So what is a Support & Resistance line? A simple way to explain this is to imagine a Support is a floor, when a ball hits the floor it bounces back. On the other hand, a Resistance acts as a ceiling on top, when a ball hits the ceiling it usually bounces back too. But there is no certainty that it will always be that way, sometimes an S&R can break too.

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To identify a support, you can see the picture above as an example, the price bounces off the GREEN line, so the GREEN line act as a Support.

On the other hand, if the price gets rejected, that level acts as a Resistance. The picture above shows the price rejected from the RED line, so the RED line acts as a Resistance.

In some cases, a Resistance can be broken too. If a Resistance is broken, usually the price will go further upside, and the Resistance will turn into a Support now.

On the flip side, a Support can be broken too. If a Support is broken, usually the price will go further downside, and the Support will turn into a Resistance.

To improve your trading win rate, you can include all 4 of the indicators together in the beginner’s guide. If you haven’t read the previous part, you can click the link here.

DISCLAIMER: This is just a very basic tutorial that teaches you how to use the indicators and is not financial advice. This article is for educational purposes only, please use it at your own risk. The cryptocurrency market is very volatile and unpredictable. Crypto Brothers will not assume any liability for direct or indirect losses.

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