Support and resistance levels are the foundation of technical analysis and probably the most universal tool that works in all markets and timeframes. Even if your strategy is based on indicators or price action, you are still consciously or unconsciously trading from these levels.
Here are the 4 most popular and effective strategies that thousands of traders actually use:
1️⃣ Range Trading
The simplest and most reliable strategy for beginners.
Buy near support - sell near resistance.
Works perfectly in a sideways market (when there is no clear trend).
The main rule: the stop-loss is always outside the range (below support when long, above resistance when short).
2️⃣ Trend trading with a bounce from dynamic levels
Use trend lines or moving averages (most often 21, 55, 100, 200 EMA) as dynamic support/resistance.
Entry only in trend after a bounce from MA.
55 EMA + 200 EMA works especially well on H4–D1.
3️⃣ Trading on breakout with confirmation (pullback)
The most dangerous but also the most profitable strategy.
Waiting for a real breakout of the level (closing of the candle above the level + large volume).
DO NOT enter immediately! Wait for a pullback to the broken level (it has now become support/resistance).
Entry on the pullback — the risk of false breakout is minimal.
4️⃣ Combination with psychological (round) levels
Levels like 1.2000, 1.3000, 50.00, 100.00 always work stronger.
Especially when they coincide with classic horizontal levels or Fibonacci levels — these are zones of maximum order accumulation.
⚠️Tips that really save the deposit:
Levels are not a line, but a ZONE. Draw not a thin line, but a rectangle with a thickness of 10–30 points.
The older the timeframe, the stronger the level (D1 and W1 are more important than everything).
The more times a level has been tested and held, the stronger it is.
After 3–4 bounces from the level, prepare for a breakout.
‼️Support and resistance levels are not a 'magic pill', but they are the basis on which no serious strategy works. Master them to automation — and 80% of trading problems will disappear by themselves.
🚀 Wyckoff method — the eternal classic of trading that still tears up the markets (including crypto)
