Support/Resistance
Last updated
Last updated
When the price charts are examined, in certain levels we can see that price has a difficulty falling below or rising above them. These levels, which are found by looking at past price movements, are called Support/Resistance levels. The more times price movements have tried and failed to breakdown or breakout the Support/Resistance levels, the stronger these levels are considered to be.
Support can be expressed as the level that the downtrend price has difficulty to breakdown in other word the level where the decline in prices is expected to stop. Selling is expected to decline as the bearish price action approaches the support level. At the support level, the downward trend in price decreases, and as the buyers begin to increase, this movement provides a bullish action and that's why we can expect an upward trend after the support level touch.
Resistance can be expressed as the level that an bullish price has difficulty to overcome, and the level where the increase in prices is expected to stop. Buying is expected to decrease when bullish price movements approach the resistance level. At the resistance level, the upward trend in price decreases, and as the sellers begin to increase, this movement provides a bearish action and that's why we can expect a downward trend after the resistance level touch
Prices are expected to increase after reaching the support level and decrease after reaching the resistance level.
In order to easily learn which altcoins are close to S/R levels, you can use S/R Analysis Tools.
A bullish breakout of the Support/Resistance levels of the price action is called the "S/R Breakout". On the other hand, "S/R Breakout + Confirmation" can be explained as price action breakout the Support/Resistance level and then confirming the Support/Resistance level by touching the Support/Resistance level again. The purpose of the "S/R Breakout + Confirmation" technical analysis algorithm is to identify possible buying points for the market.
When the price first breakout the Support/Resistance level and then confirms, it is interpreted that the trend will rise and "S/R Breakout + Confirmation" is considered as a possible buy signal for investors.
In order to easily obtain S/R Breakout + Confirmation detections, you can create Alerts or Custom Signals through the Coinlegs system, and start autotrading bots on LegsBot by using the alerts you create.
It is called "S/R Breakdown" when prices, breakdown the Support/Resistance level and create a new trend. "S/R Breakdown + Confirmation", on the other hand, can be explained as prices breakdown the trend line and then touching the trend line again, confirming the trend line. The purpose of the "S/R Breakdown + Confirmation" technical analysis algorithm is to identify possible selling points for the market.
When the price first breakdown the Support/Resistance level and then confirms it, the trend is interpreted as falling and "S/R Breakdown + Confirmation" is considered as a possible sell signal for investors.
In order to easily obtain S/R Breakdown + Confirmation detections, you can create Alerts or Custom Signals through the Coinlegs system, and start autotrading bots on LegsBot by using the alerts you create.
