Lesson 2 of 6 11 min read
Support, resistance and key levels
Drawing levels that matter and ignoring those that don't.
What a level is
A zone where price has repeatedly reacted. It reflects where buyers or sellers previously stepped in. Treat levels as zones, not exact lines.
Role reversal
Broken resistance often becomes support on a retest, and vice versa. Retests are common places to plan entries with a nearby invalidation.
Less is more
Mark only the clearest few levels on the higher timeframe. A chart covered in lines leads to indecision.
Key takeaways
- Levels are zones of prior reaction.
- Broken levels often flip roles.
- Keep only the most obvious levels.
Exercise
Draw no more than four levels on BTC's daily chart. Check how price behaved at each over the last month.
Educational content only, not financial advice. Crypto is volatile and you can lose money.