Happy Sunday everyone

Today, let’s talk about one of the most important foundations of trading that every beginner must understand before placing more trades.

If you don’t understand this, you will always feel like the market is moving randomly. But once you get it, charts will start making a lot more sense.

Let’s break down support and resistance in the simplest way possible.

One of the first things every beginner needs to understand in crypto or forex is support and resistance.

Think of it like this: imagine a street market where buyers and sellers meet.

  • Support is like a strong floor in the market, a place where buyers are ready to step in.

  • Resistance is like a ceiling, a place where sellers wait to push the price back down.

When price falls to support, buyers feel it’s a good deal and step in to buy. Price often bounces back up.

When price rises to resistance, sellers feel it’s too expensive and start selling. Price often drops.

This is why price often moves between support and resistance levels. Beginners often don’t notice these invisible floors and ceilings. They enter trades randomly, expecting price to always go up or down. That’s why they lose money.

Here is the key: the more times price touches a support or resistance and bounces, the stronger that level becomes.

  • Strong support = many buyers defending the level

  • Strong resistance = many sellers defending the level

Now imagine if a level finally breaks.

  • If support breaks → buyers are no longer defending → price can fall fast

  • If resistance breaks → sellers are no longer defending → price can rise fast

This is why breakouts are exciting but also dangerous for beginners who enter too early.

Another useful tip is round numbers.

In forex, levels like 1.2000 or 1.5000 often act as support/resistance. In crypto, levels like $30,000, $50,000 or $60,000 in $BTC often behave the same.

Why? People like “round numbers” psychologically, they set their buy/sell orders there, creating natural floors and ceilings.

Support and resistance also work on different timeframes.

  • A support level on the 1-hour chart may only hold for a few hours

  • A support level on the daily chart is stronger and more reliable

This is why beginners often get trapped in breakouts on small timeframes. They don’t realize the higher timeframe level is stronger.

Finally, combine support/resistance with other concepts like candlestick wicks, liquidity and market structure. That’s when you start seeing why price reacts the way it does, not just guessing.

You can read more about them here

How to read a candlestick chart in 5 minutes (Beginner Friendly Guide).

What Liquidity Really Means And Why Price Hunts It

Support and resistance is the foundation of technical analysis. Without it, every trade is random. With it, you can start planning entries, exits and stop loss levels intelligently.

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