Support and Resistance Strategy on Cryptocurrency

Digiasset News Dec 06, 2022

This time we will learn about support and resistance technical analysis. Reading crypto market charts, including knowing the support and resistance points so that you can determine when to buy and sell crypto is right, as well as determining take profit and cut loss to suppress deeper losses. Technical analysis such as support and resistance does look difficult for beginners. But all this can be learned gradually. That way, you will not only get big profits, but also become a trader or a reliable investor.

Support is the line at the bottom chart or the lower limit of the price on the Crypto market*.* A strong level of support is shown by chart close to the line support, which the line does not penetrate, so this is an indication to take action to buy .

Resistance is the opposite of support, which is the upper limit of the Crypto price. The line or dots resistance can be used for a selling strategy, because when approaching the line resistance, the pattern that often occurs is that the price will decrease. This is suitable for short-term traders so they don't regret it when asset prices fall again.

To take advantage of the support-resistance line, in a bullish trend, traders can also do it. The indication is that the price penetrated the resistance zone to continue rising, then retested the zone it just penetrated (so that the resistance line turns into support). It is suitable for following the price breakout trend. Usually the retest point is likely to gain momentum for the next strong bounce.

For example, on the MATICIDR asset for the period June 19 2022, using the horizontal Rey indicator on the Digiasset market you can learn to analyze support and resistance. The yellow line is for support, and the green is resistance. Examples of red colors number 1 and 2 are ways to take advantage of entry at the support level. And the blue color for numbers 3 and 4 is the entry point to take advantage of the retest moment. In this analysis the potential increase/profit is 5-10%.

Tips for support and resistance are: Practice often to identify support and resistance levels in detail, then in entry, try to use an amount that is not too large, prioritizing entering assets with clear projects and teams. Keep DYOR Before Investing/Trading

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