Above you have the Bitcoin chart with 1 candle per 24 hours; Daily time frame.
Bitcoin price is likely to stop at the next resistance point. Note the word "likely", because there is always the chance of the price going higher and breaking more than one resistance. This is of course an example based on an up move.
Let's get to it:
1) Indicator TD Sequential: My indicator is telling me that there is resistance at the $7958 price.
2) indicator: EMA200 shows resistance at $7862.
3) Fibonacci Tool: Based on the April bull move, Fib numbers show resistance at $7901.
If you go by what these indicators are telling you, you could easily say that Bitcoin will face resistance in the $7850 - $8000 range.
There are many more ways to find resistance points and also tools that can be used for this same purpose, but these are very easy to work with and can help you become better at making the right choices when trading.
The same tools can be used to find support levels.
Once you have resistance and support levels, it becomes a lot easier to trade or try and figure out what might come next.
I hope you enjoy this post... My deepest love and gratitude to you...
In the chart above look at the purple, green and red dotted lines. When the price of Bitcoin changes, up or down, it can find support when touching these lines.
"What is a 'Trendline'
"A trendline is a line drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trendlines are a visual representation of support and resistance in any timeframe. Trendlines are used to show direction and speed of price, and also describe patterns during periods of price contraction."
Depending on the timeframe you use for your chart, you can find short term, mid and long term resistance/support.
You can use additional tools to confirm these...
Here is a quick example:
(Notice on the weekly chart the EMA200 (brown) is at $3744, EMA100 (blue) $5695, etc. and compare to the 4h chart...)
I use mainly EMA and SMA as indicators for moving averages, there are many variants and options available for you. Pick the one that you like most, get used to it and start practicing.
Your support is highly appreciated.
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So you can see how these tools work...
See you at the next one.
Read "TRADING TIPS FOR BEGINNERS" on the second part of the post: