People often ask me how to identify support and resistance points. I often compare the candlestick chart to a chessboard, where support and resistance are like every grid on the board, which is essentially static. The candlesticks are like chess pieces; wherever they move, they can make the next move. I keep the levels in my mind, and even when I'm not watching the market, I generally know where it might retrace to. If I can't remember the levels, I look at Bollinger Bands; this is the most basic thing.

This morning, ETH rebounded to 4024, which is the upper band of the 6-hour Bollinger Bands for ETH, as its 1-hour MACD is above the zero line, indicating a bullish structure. For a retracement, I only look at the middle bands of the 30-minute and 15-minute Bollinger Bands; the 5 and 3-minute levels are too small and generally don't hold up, so there's no need to look or act on them. ETH retraced from 4024 and was supported right at the middle band position of the 30-minute chart. So, I entered a low long position here. But how did I know in advance whether this would hold? By looking at the MACD. When the MACD on the 30-minute level does not fall below the zero line, there will be no adjustment on the 1-hour level, so the lowest point of the retracement is locked within the adjustment range of the 30-minute level.

Support points between 4000-3500: 3960, 3930, 3880, 3828, 3772, 3742, 3660, 3630, 3596, 3560, 3526.

In a strong market, the retracements are mainly locked between the two support points closest to the intraday high. This morning's high was 4024, so the main focus for the retracement is on 3960-3930, because 3880 is 140 points away from 4024, and it is not easy to drop to that level in a strong market. Sometimes I hit the points accurately, sometimes not so accurately, but entering low longs can still gain a few points; 3966 and 3936 are my own creations to prevent missing by a few points.

I like to use some special numeric patterns for my low long entries, such as 104666, 103888, 102888, 101888, 99666, 98888, 97777, 96666, 95555, 94666, 93888, 92888. These are all near support and resistance points, whether they overshoot a bit or hit the points accurately, they are generally around there.

As long as it is not sideways, the same level generally will not be reached again within the same day. So, before a retracement, I place orders in advance. If you’re unsure about the support, then enter with a light position. This is better than blindly shorting.