THE SUPPORT AND RESISTANCE LEVELS IN CRYPTOCURRENCY MARKET TRADING
Hello to everyone in this great community and in the steemit platform at large. I greet you all in good spirit and I want to believe that you all are doing just great today.
I welcome you all to today's discussion on cryptocurrency trading which has been titled support and resistance levels in cryptocurrency market trading. This is an important aspect in cryptocurrency trading and today, I will be emphasizing more on these levels when making a market chart analysis. Join me as we take a little discussion down the road.
In cryptocurrency market trading, it requires a technical analysis in which a trader tends to view the condition of the market before forging ahead to execute a particular trade. In analyzing a market trend, it is important that we take note of the chart movement.
The chart movement shows us a clear picture of the activities in the market and this is denoted through different trend lines. We have the uptrend and the down trend movement and both of them signifies different movements in the cryptocurrency market trading.
The uptrend movement shows that there are traders in the market that are purchasing a particular cryptocurrency asset in the market and hence they have executed a buy entry order while the down trend movement signifies that there are traders present in the market who are selling a particular cryptocurrency asset and hence they have executed a sell entry order.
Now haven noted this down it is expedient that we return to the main topic of the day. The above discussion was just a hint or headway to what I am trying to discuss today which is the support and resistance levels in cryptocurrency market trading.
Before going further, it is vital that I explain to you all the meaning of support and resistance levels in cryptocurrency trading.
WHAT ARE SUPPORT LEVELS?
Support levels in cryptocurrency chart trading are levels that is seen in the market when a particular cryptocurrency asset seen in a downtrend eventually stops to depict lower lows. It is seen when a sudden purchase of a particular cryptocurrency asset is seen in the market after numerous downtrend in price value of that said cryptocurrency asset.
The support levels are levels that helps is noticed in the market in which the price of a particular asset ceased to reduce in price value as we get to see a strong purchase helping the price value of that particular cryptocurrency to rise again.
When certain traders are selling off a particular cryptocurrency asset, the asset chart and price value tends to depicts lower lows and keep going in a downtrend movement and then suddenly there is are strong green candle sticks facing and uptrend direction. Those green candles sticks are refer to as the Support levels.
WHAT ARE RESISTANCE LEVELS?
Resistance levels are said to be levels that appears during an uptrend movement in the market. These levels stops or halt the price value from going up further and hence it implies that a down trend is about to be noticed regarding the price value of a particular cryptocurrency asset traded in the market.
Resistance levels often come with strong red candle sticks which implies that sellers are down dominating the market as they sell the cryptocurrency asset off and since they are more than the buyers of the said asset, their activity tends to create resistance levels in other to stop the movement of the said asset and bring it price downtrend.
IMPORTANCE OF THE SUPPORT AND RESISTANCE LEVELS IN CRYPTOCURRENCY MARKET TRADING
The importance of the support and resistance levels in cryptocurrency trading is that it helps a trader who is just coming to trade in the market to see how well a cryptocurrency asset is been sold or purchased and it also helps the trader to know what has happened after drafting out the support and resistance levels and as such gives the trader an idea of the kind of entry order he or she should execute.
Support and resistance levels are also part of making a trade analysis of the market as we get to point out the support and resistance levels to see how well an asset is either being purchased or sold off and this will give a trader an edge in the market.
It is essential to always spot out the support and resistance levels of a particular asset chart to know the kind of entry that is expected to be executed in other to reduce the incident of losses while trading in the cryptocurrency market.
Thank you all for your time and I hope this article is of help to you in trading aspect.
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Guide About Crypto, Blockchain and Investment Topics by ponpase
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