People often ask me how to identify support and resistance points. I often compare the candlestick chart to a chessboard, with support and resistance acting like each grid on the chessboard, which are essentially static. The candlesticks are like chess pieces, and wherever they move, they may take the next step. I keep the levels in my mind; sometimes even when I’m not watching the market, I have a rough idea of where it will retrace to. If I can’t remember the levels, I look at the Bollinger Bands (Boll), which is the most fundamental aspect.

In the morning, ETH rebounded to 4024, which is the upper band of the 6-hour Boll for ETH, since its 1-hour MACD is above the zero line, indicating a bullish structure. For retracements, I only focus on the middle bands of the Boll on the 30-minute and 15-minute charts; the 5 and 3-minute levels are too small and generally won't hold, so there's no need to look or act on them. ETH retraced from 4024 and found support exactly at the middle band position on the 30-minute chart. So, I entered a low long position here. Why did I know in advance whether it would hold? I looked at the MACD. As long as the MACD at the 30-minute level does not fall below the zero line, it will not enter a 1-hour adjustment, 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.

During a strong market, the retracement mainly locks in between the two support points closest to the intraday high. This morning's high was 4024, so the retracement mainly looks at 3960-3930, because 3880 is 140 points away from 4024, and it's not easy to drop to that level during a strong market. Sometimes hitting the exact point is accurate, and sometimes it's not; entering a low long can be a few points higher. 3966 and 3936 are my own creations to prevent missing out by a few points.

I like to use some sequence numbers for entering low long positions, such as 104666, 103888, 102888, 101888, 99666, 98888, 97777, 96666, 95555, 94666, 93888, 92888; these are also close to support and resistance points. Whether it slightly pierces or hits the exact point, it’s generally around there.

As long as there is no sideways movement, the same level will generally not be reached again within the same day. Therefore, it's important to place orders in advance before the retracement. If you are unsure about the support level, enter a light position. This is better than blindly shorting.