Supports and Resistances: Your Friends and Foes in the Market Mountain

Imagine you are a climber, representing the price of a cryptocurrency, and you are climbing a mountain called the “market”. During this climb, you meet friends and enemies who make your journey easier or harder.

Support: Your Faithful Friends

Supports are like friends who are always there to help you when you are falling. They reach out, hold you up, and keep you from going to lower levels.

• What do they do?

They provide support, like stable platforms where you can rest and regain strength to continue climbing. In the market, this means that buyers step in, holding the price up and often helping it rise again.

• When support fails:

Sometimes even the strongest friends can’t hold you up, and you fall. In this case, the support becomes a former friend – now, they act as an obstacle when you try to climb back up.

Resistance: Enemies in the Way

Resistances are the enemies of climbing. They appear as large rocks or walls trying to block your ascent. These enemies are the sellers, who push the price down.

• What do they do?

They try to pull you down when you get close to them, making it harder to move forward. In the market, this happens when too many sellers are active, preventing the price from moving up.

• When resistance is overcome:

If you can defeat this enemy, something magical happens: it becomes your friend! The broken resistance turns into support, helping you keep climbing.

Role Swap: Friends Turned into Enemies and Vice Versa

In the market, supports and resistances can switch sides:

• When support fails, it becomes resistance, making it difficult to climb.

• When you break through resistance, it becomes support, helping you move forward.

In summary:

• Support: The friend who catches you when you are falling.

• Resistance: The enemy that tries to block your ascent.

• Breakup: When you overcome enemies or lose the support of friends.

Use this idea to plan your strategy in the market. Trust your friends (supports), face your enemies (resistances), and enjoy every victory (breakthrough)!

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