Do you have the support you need to be successful?
Allow me to help.
What’s up everybody, its Keyser Crypto, I’m here to take you back to the basics. No we’re not going to be talking about Starbucks and Uggs nor is this a support group for it. I’m going to be going over how to find support for your cryptos. Finding the support/resistance range of a crypto can help you to determine where the bottom may potentially be, trend lines, buy/sell placements, and risk management.
Everyone thinks that charting is so hard, but literally all I’m doing is teaching you how to place straight lines…
Toolbar: Left side of chart
- Green: 1W
- Light Blue: 3D
- Dark Blue: 1D
- Purple: 12H
- Pink: 6H
Look at the chart
I am going to be using Monero (XMR) for the remainder of the article.
Start big and go small.
- Zoom out to the farthest setting and just look at the chart.
- Most the time 1-2 week candles will be the largest time frame you can do.
- Scroll to the toolbar and click the expansion arrow for trend-line
- Click horizontal line (alt+H)
- Place it where you found YOUR support or press alt+h for the shortcut.
I used 1 week candles here because there was not clear pattern to confirm a support or resistance @ 2 week intervals.
3 Day XRM Chart
Change the time frame one interval smaller (3D)
Something I like to do is change the color horizontal supports for the different time periods. You will see shortly. This is for organizational and comparison purposes.
Perform the same steps we did for 1W candles and do it for 3D candles now.
Note there is not algorithm or method that I am choosing to mark these with.
This is all what I think the support/resistance lines are and if the picture makes sense when I put it on there.
1 Day XRM Chart
Change the time frame one interval smaller (1D)
The reason that I chose to put 1D dark blue support there was due to the accumulation phase at the origin of the coin. I put the horizontal resistance on the wicks of the candles in the blue box and sure enough it almost matched with todays price.
Try to find a connection between past and present; history doesn’t always repeat itself, but it can give you and insight on what might happen.
12 Hr XRM Chart
Change the time frame one interval smaller (12hr/720)
I cut the time in half to 12Hr or 720 minute candles. There is a lot more data to be seen and utilized here. Feeling comfortable I nailed all the major support and resistance correctly, I zoom in on the recent part of the chart. I took a second to see if I needed to place any horizontal support/resistance lines but I decided I didn’t. So what I did next was map out the trend.
It’s all about precision of the placement. How I usually determine where to put my trend line is by going to the most recent peak. Seeing if the Wick is reasonable and if so, starting my trend line there. I do make adjustments for candle with extreme wicks.
Try to get as close to putting the trend line on as many other peaks along the way as possible.
You will notice how XMR followed this as its resistance almost all the way down.
As for the recent uptrend I did the same but in reverse. I started from the lowest candle’s wick @ the most recent bottom and tried to match it with as many of the candle wicks in the trend direction. However, there is not enough data to determine if this is an up trend. This is just to help see where it could go.
6 Hr XMR Chart
Change the time frame one interval smaller (6hr/360)
Zooming in a little closer we can see that stuff start to get interesting. Let me walk you through what I did. Take note I used pink for the 6 Hr / 360 min.
I zoomed in to a range that I felt comfortable being able to determine the current trend in the market, and I looked.
I eventually noticed the candles inside the box had a similar pattern and resistance points as well. So I put one horizontal marker there as well. I looked for anything else that could help me and I decided to put another horizontal marker on the last green candle before the recent downturn. My thought process was “Okay, this was the last green candle before a sizeable bear run. Right now there is a sizeable bull run but that can’t go one forever. Thinking about momentum and how a half pipe works, from the initial drop in with no outside factors affecting you, you will never reach the same spot you dropped in at. This could be an interesting resistance point for it to be met with. I’ll mark it”
3 Hr XRM Chart
Change the time frame one interval smaller (3hr/180)
And for the final step I cut 6 hr in half to 3 hrs to get a close up view of what’s happening.
The 1D (dark blue) support is right on target with the current price action of XMR. We can tell the angle at with the up trend may occur isn’t as steep as it once looked but still a steady incline. We can assume each on of the line above it and in the future will act as support/resistance in this price range.
Having this knowledge, I’d like to get creative.
I put a vertical market (alt+v) on the most recent candle for an indication.
Next I head to the brush – expand it to find and click on triangle.
I put the triangle in my newly created area from my new indicator.
In my opinion this is just a good way of letting you know if the chart is still on track. You can easily make zones like the following EDR chart.
This is to help you and not the chart. It also looks oddly satisfying to the eye. One thing I do like about drawing out these is it is also a good way to manage short term risk. Learning how to do the basics will always be helpful no matter where you go in life.
Now get on out there and go find your perfect support but try not to get resisted.
Keyser is all about helping Nocoiners become Hodlers. He got his first experience with crypto in 2015, and has been an active member of the community since. He started writing to help make the jump in to crypto easier for everybody