From the book Investing and Trading: Secrets to Success
Understand support and resistance zones and their role in technical analysis.
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Our YouTube channel is originally in Spanish. Some videos may not have an English audio track.
Watch on YouTube ↗Our YouTube channel is originally in Spanish. Some videos may not have an English audio track.
CHAPTER SUMMARY
The idea in one minute
Support and resistance are areas where price may encounter significant demand or supply. They help organize scenarios and locate possible reactions. They are analytical references, not walls the market is obliged to respect.
What to remember
- Mark zones rather than precision the chart cannot provide.
- A breakout can turn support into resistance, or vice versa.
- False breakouts are among the possibilities.
Put it into practice
Mark a visible zone on a broad chart and write down what you would consider a valid breakout. This gives you a criterion before price arrives.
Want to go deeper?
Find the full discussion and examples in the book Investing and Trading: Secrets to Success.
Browse all chapters
- INIntroduction
- TOCContents
- 01The evolution of trading
- 02Trading and investing
- 03Different markets
- 04Fast and slow leverage
- 05Spot vs. derivatives
- 06D.C.A. strategy
- 07Diversification
- 08Base and quote currencies
- 09How money works
- 10Financial market cycles, BTC halving, and strategy
- 11Reading Japanese candlesticks
- 12Support and resistance
- 13There is no exact science in this field
- 14What moves markets?
- 15How to identify trends
- 16Ranges
- 17Japanese candlestick patterns
- 18Moving averages
- 19The most popular technical indicators
- 20Filling the GAP
- 21Trading styles
- 22Binary options: the biggest garbage ever to exist in the markets
- 23Fundamental analysis and fundamentals
- 24Financial bubbles
- 25Before learning to win, learn to lose
- 26An asset’s average price
- 27Extreme events
- 28Price action: strategies
- 29Liquidity and market makers
- 30The DeFi world: benefits and risks
- 31Scams and risks to avoid
- 32Risk vs. volatility
- 33Arbitrage
- 34Grid trading in Spot and Futures
- 35The shortest path is the longest path
- 36The circle of success
- APAppendix
- ENDFarewell
Video from the original 2024 edition and a summary prepared for this website. References and conditions in the video may have changed.
Educational content. Trading in financial markets involves a risk of loss; past results do not guarantee future results.