In Binance trading (and trading in general), Support and Resistance are key technical analysis concepts used to understand price behavior and plan entries/exits.
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🟢 Support
Support is a price level where an asset tends to stop falling because buying interest is strong enough to outweigh selling pressure.
Think of it as a floor. When price hits support: • Buyers step in 📈 • Price often bounces upward • If support breaks, price may fall further
Example: If BTC repeatedly drops to $40,000 and then bounces up, $40,000 is a support level.
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🔴 Resistance
Resistance is a price level where an asset tends to stop rising because selling pressure is stronger than buying pressure.
Think of it as a ceiling. When price hits resistance: • Sellers step in 📉 • Price often falls back down • If resistance breaks, price may rise further
Example: If BTC keeps rising to $45,000 and then drops, $45,000 is a resistance level.
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📊 How Traders Use Support & Resistance on Binance
On Binance charts, traders use these levels to: • Buy near support • Sell near resistance • Set stop-losses just below support • Set take-profits near resistance • Spot breakouts when price strongly breaks through support or resistance
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🔄 Role Reversal (Very Important)
When: • Resistance breaks → it often becomes new support • Support breaks → it often becomes new resistance
This is called support/resistance flip.
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🛠 How to Identify Support & Resistance on Binance Charts
You can use: • Horizontal lines (most common) • Previous highs & lows • Trendlines • Moving averages • High-volume price areas
On Binance: 1. Open a trading pair (e.g., BTC/USDT) 2. Open TradingView chart 3. Use the horizontal line tool 4. Mark areas where price repeatedly reacts