Read this article carefully, I dare say you are already ahead of 90% of people in the crypto world.

I've been thinking, why do most traders always lose money? I realized that the core issue isn't the market itself, but that they simply don't know how to identify the key levels in the market.

Imagine the workflow of a sniper. After receiving the mission, they spend time surveying the terrain, choosing positions, understanding the target's habits, preparing equipment, planning the retreat route, and then patiently waiting. The entire process seems tedious, but it's this meticulousness that guarantees success. Trading follows the same logic. A truly profitable trader never enters impulsively; they develop a complete plan before each trade, and the core of that plan is to find the market's support and resistance levels.

There's an interesting phenomenon in the market. About 90% of people don't know how to find support and resistance levels, and among the remaining 10%, 80% are wrong. They think of support as the floor and resistance as the ceiling, which isn't wrong in concept, but too superficial. True support and resistance levels are not just places where prices pause randomly; they are significant levels where the market has reacted multiple times. I call these truly effective levels "key levels."

Key levels are like magnets; the market is repeatedly attracted to them. Yesterday's resistance can become today's support. These levels have been tested countless times, and the market remembers them. When prices approach again, clear reactions often occur.

There are five core features to identify these key levels. First, the more contact points, the better. A level touched 3, 5, or 10 times indicates higher importance. Second, there has been a strong reaction before. The market has made significant upward or downward moves from here, indicating institutional involvement. Third, it should be very clear and easy to see at a glance. If it looks blurry, you'll hesitate to enter, so it's not a good key level. Fourth, it has been rejected multiple times. You'll see long upper or lower wicks, with prices repeatedly trying to break through but being pulled back. Fifth, it has served as both support and resistance. Both bulls and bears have defended this level, showing it holds a certain status.

Many people make the first mistake of drawing too many lines. They clutter the chart, making everything unclear. Remember, the simpler the chart, the better—only mark the most important, nearest support and resistance levels. The second mistake is reckless entry. Seeing the price touch a key level and immediately going short or long is suicidal. Yesterday's resistance might become today's support; wait for clear signals from the market before acting.

The third point is that key levels should be zones, not just a single line. The market won't repeat perfectly, so leaving some margin for error is crucial. This subtle difference can determine success or failure. Fourth, don't draw too wide a zone. Too large an area can overwhelm you; try to connect only the real bodies of candles and narrow the range. Fifth, always start from a higher timeframe. First, check the weekly chart to confirm the trend, then look at the daily for entry points, and finally examine the hourly chart. This approach increases your chances of being on the right side of the trade.

How to draw these levels in practice? First, connect the areas where the most candlestick bodies have touched with a line—remember, the body is more important than the wicks. Second, draw one line above and one below to form a zone. Third, delete the middle line and adjust to a reasonable range.

When the price reaches a key level, there are usually three possible outcomes.

First is a trend reversal. When you see candlestick patterns like shooting stars or hammer candles at a key level, it signals a potential reversal. The price tries to break through but gets pulled back, indicating the opposing force is stronger. Overbought or oversold signals from RSI also support this. But remember, a single indicator isn't reliable; you need multiple signals to confirm before entering. Another reversal sign is candles getting smaller, showing momentum weakening. Increasing frequency of pullbacks also indicates opposing forces are emerging.

Second is a breakout. Be especially cautious of false breakouts. Many people see a single candle closing above support or resistance and rush to enter, only to be trapped by a larger counter-move on the next candle. To avoid this, the best approach is to wait for a retest. After the price breaks through a resistance and pulls back to test it, if it gets pushed back up, it confirms that yesterday's resistance has turned into today's support. That’s the real entry point.

Third is consolidation or sideways movement. Both sides reach a balance at the key level, and the price oscillates within a range. In this situation, profit potential is small, and the direction is unclear. The smart move is to stay out and observe. If the price stays in the upper half, it indicates buyers are gathering strength. If it stays in the lower half, sellers are preparing to move. Make your plan based on this judgment.

All in all, the core message is: find the support and resistance levels that the market truly cares about, develop a trading plan around these levels, wait for signals, and then act. Don’t chase the highs or sell the lows impulsively. Don’t enter trades without a plan. The market offers many opportunities—over 200 trading pairs at your disposal. The biggest risk is trading blindly without a plan.

This knowledge isn't a secret, but very few people can apply it correctly. The paid courses out there teach roughly the same things, just packaged differently. I don’t recommend real-time analysis because trading is time-sensitive; markets change in an instant, and I can't follow every move. Plus, human nature is hard to challenge—waiting for 5% profit might take 10%, then you want to double it, and finally, you end up losing everything. Instead of copying others, it's better to teach yourself to think independently. Because 95% of analysts out there are essentially just watching your capital, you need to learn how to judge for yourself.

So my advice is: learn these techniques thoroughly, practice a lot, backtest, and observe charts. Two months is enough to master the skills, then you can start making money. Believe in yourself—anything done to the extreme can lead to success. In trading, there are no absolute enemies or friends—only the correct understanding and execution of support and resistance levels.