Retail investors' biggest headache is not knowing when to buy and when to sell.

I’ve found that very few investors can accurately catch the bottom, probably only about 10%.
The reason these people can become trading experts is because they have a key tool behind them—the use of support lines.
Today, I want to talk with everyone about how top traders view the system of resistance and support.

First, you need to understand what a support line is.
When the price of a coin drops to a certain level, the bulls see profit potential and start buying heavily, causing the price to stop falling or even rebound.
Drawing a line at this level is called a support line.
Conversely, there are resistance lines, and more advanced concepts like ascending support lines and trend lines, but the support line is fundamental.

If you can buy near the support line, it’s basically buying at the start of an upward move.
So how can you accurately judge this?
Taking BTC as an example, first find the previous low, then find a second low close to the same level, and connect these two points with a horizontal line.
As long as a third point falls back to this line and rebounds, it confirms that this is indeed a support line.
Next time the price drops near the support line, it’s a buying opportunity.

Support isn’t only seen in candlesticks; moving averages also provide support.
The principles of moving average support and candlestick support are similar, which I will explain in detail later.
But knowing the theory alone isn’t enough—many people only learn superficial knowledge and rush to buy, ending up trapped.
We need to understand the practical application of support and resistance levels more deeply.

Support and resistance levels are core concepts in technical analysis.
Support levels are prices where the decline might halt and stabilize; resistance levels are prices where the rise might reverse downward.
There are several ways to judge them: look at previous highs and lows, key round numbers, important historical price levels, trend lines, the performance of various moving averages, and even areas with dense chip distribution that can form support or resistance.

In practice, consider buying near support levels because the price might find support there and rebound.
Consider selling near resistance levels because the price might encounter resistance and fall back.
Breaking through support or resistance often signals a trend reversal or continuation, which is an important reference for trading decisions.

But note that support and resistance levels are not fixed; they can change roles as the market shifts.
Their effectiveness depends on a combination of market trend, trading volume, investor psychology, and other factors.
In actual trading, it’s best to combine these with other technical analysis tools and fundamental analysis to improve your win rate.

Mastering the judgment and application of support and resistance levels is crucial for developing trading strategies and seizing market opportunities.
Through continuous practice and reflection, you will become more familiar with these key levels and be able to manage risks more effectively.