Most newbie traders often misunderstand support and resistance, thinking that they just need to “buy at support, sell at resistance”. If trading were that easy, anyone could be rich! Let’s explore how pro traders use these price levels – and why newbies often stumble.
🔥 1. SUPPORT & RESISTANCE ARE NOT EXACT NUMBERS – THEY ARE PRICE LEVELS
Many traders focus too much on specific price points, while the market often fluctuates within a wide range. If you wait for the price to hit the exact point before entering a trade, you may miss out on many opportunities.
📈 Example: If Solana ($SOL) is currently supported around the $138 mark, the price could drop to $135 or lower ($130) before recovering. If you wait for the $138 mark to buy, you will miss the opportunity.
💡 Tip: Identify support and resistance as a price range rather than just fixed numbers.
🔥 2. THE MORE YOU CHECK, THE WEAKER THE SUPPORT & RESISTANCE
Many traders mistakenly believe that the more a price level is tested, the stronger it becomes. The truth is that the more times it is touched, the weaker that price level becomes, as the buying/selling pressure around that area will diminish.
📈 For example: If Cardano ($ADA) repeatedly hits the resistance level of $0.75, in reality, it is creating pressure for a breakout rather than being rejected. When the breakout occurs, the price could push up to $0.80+.
💡 Tip: When the price touches a support or resistance zone multiple times, be prepared for a breakout, not a reversal.
🔥 3. BE CAREFUL OF “FAKEOUT” MOVES
The market loves to trick traders with fake breakouts followed by an immediate reversal.
📈 Example: Bitcoin ($BTC) is facing resistance at $87,000. If the price breaks through $89,000, many traders will be drawn into the buying door (FOMO). Then, the price suddenly returns below $85,000, causing heavy losses.
💡 Tip: Before trading a breakout, wait for confirmation – like a spike in trading volume or a price return to a retest.
🚀 UNDERSTAND THESE PRINCIPLES READY TO BECOME A PROFESSIONAL TRADER!
Support and resistance are flexible price areas, not fixed. Successful traders are those who can predict breakouts, avoid false breakdowns, and understand market psychology.
Have you ever stuck in fakeout or missed a breakout? Share your experience in the comments! 👇
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How to Use Support & Resistance Like the Pros (Not Like 99% of Other Traders)
Most newbie traders often misunderstand support and resistance, thinking that they just need to “buy at support, sell at resistance”. If trading were that easy, anyone could be rich! Let’s explore how pro traders use these price levels – and why newbies often stumble. 🔥 1. SUPPORT & RESISTANCE ARE NOT EXACT NUMBERS – THEY ARE PRICE LEVELS Many traders focus too much on specific price points, while the market often fluctuates within a wide range. If you wait for the price to hit the exact point before entering a trade, you may miss out on many opportunities. 📈 Example: If Solana ($SOL) is currently supported around the $138 mark, the price could drop to $135 or lower ($130) before recovering. If you wait for the $138 mark to buy, you will miss the opportunity. 💡 Tip: Identify support and resistance as a price range rather than just fixed numbers. 🔥 2. THE MORE YOU CHECK, THE WEAKER THE SUPPORT & RESISTANCE Many traders mistakenly believe that the more a price level is tested, the stronger it becomes. The truth is that the more times it is touched, the weaker that price level becomes, as the buying/selling pressure around that area will diminish. 📈 For example: If Cardano ($ADA) repeatedly hits the resistance level of $0.75, in reality, it is creating pressure for a breakout rather than being rejected. When the breakout occurs, the price could push up to $0.80+. 💡 Tip: When the price touches a support or resistance zone multiple times, be prepared for a breakout, not a reversal. 🔥 3. BE CAREFUL OF “FAKEOUT” MOVES The market loves to trick traders with fake breakouts followed by an immediate reversal. 📈 Example: Bitcoin ($BTC) is facing resistance at $87,000. If the price breaks through $89,000, many traders will be drawn into the buying door (FOMO). Then, the price suddenly returns below $85,000, causing heavy losses. 💡 Tip: Before trading a breakout, wait for confirmation – like a spike in trading volume or a price return to a retest. 🚀 UNDERSTAND THESE PRINCIPLES READY TO BECOME A PROFESSIONAL TRADER! Support and resistance are flexible price areas, not fixed. Successful traders are those who can predict breakouts, avoid false breakdowns, and understand market psychology. Have you ever stuck in fakeout or missed a breakout? Share your experience in the comments! 👇