It is the highest point or peak of the price that the chart has registered while there has been an uptrend, thus acting as the sellers to put an end to the uptrend. Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. The supports and resistance are used of great importance in the analysis because in them we can observe which are the peaks that are produced a setback.
As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG. I, the copyright holder of this work, release this work into the public domain. This is the lowest point that marks the price of a trend on the chart thus making a kind of floor or support which is where the price can no longer go down from there.
File usage
You can see in the image how the price crashes several times and can not continue to rise so we identify that area as resistance or ceiling. This topic is extremely important, as I said, since the supports and resistance are not a fundamental part that you have to manage regardless of the asset with which you work. This file contains additional information, probably added from the digital camera or scanner used to create or digitize it. Any questions, criticisms or suggestions I am open to them, you can leave me in the comments on what other topics about trading you would like to share.
In a trend there can be several supports and resistances, but there are supports and resistances that the price crashes several times and it can not pass. These are called «Strong Zones» which are the ones we have to take into account and use for our technical analysis. Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.
Support
If you look at the image you can see that resistance changes at the same time to support and supports to resistances. This occurs when the price crashes several times in that area and tends to break it creating another peak. The supports or floors and the resistances or ceilings, are part of the technical analysis and the price action. How are my friends trading lovers, I hope my previous post as well as all have been to your liking and I hope you get the best of the benefits. Well since all that today I bring you a basic but very important topic because everything is necessary to make a technical analysis to operate in the market. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
