It's great that we can determine extremes of average ranges with the Bollinger Bands. Or we can see the average of the price as it moves with a moving average. Or we can see if a cryptocurrency is overbought or oversold based on certain factors.

But in my practice, believe it or not, mere support and resistance have been my go to for decision making in my trades.

And I have found that personally, using support and resistance to make my trades has been more profitable than using technical tools.

If you remember my 2nd post yesterday, I talked about my market scanner and how it works. My market scanner is based on technical analysis using most common technical tools. So am o contradicting myself?

No! I use my market scanner to find coins to trade, upon which I then apply the basic rules of support and resistance to get the most accurate and profitable results.

It might seem like a pipe dream for real, but support and resistance tell you the full story of the chart better than most other technical tools.

So what does support and resistance really tell you?

Well, a support tells you an area where buyers defended the price from any further decline. That is a spot where all the buyers are waiting. What I do is to set my entry order slightly above the support, so I get in much earlier than everyone else. It isn't unlikely that price won't touch the support line, but it is usually a 70-30 bet that price won't pass that level, especially for supports that have held up for months, and even years.

How do you draw accurate supports? Simple. Zoom out to a higher time frame(say a 12 hour or daily) and look for areas where price hit, and then turned around. These(or a little bit above these) would be areas where you can expect to find a good buying deal.

You can do the same for resistance too. Look for areas on a higher time frame where the price action completely turned downhill once it touched. Selling a little bit below resistance guarantees you a profit. Again, it's a 70:30 bet.

Although support and resistance are quite accurate tools, as in the case of Bitcoin that we are currently seeing, it doesn't always work perfectly. It is best that you trade with caution, and watch the price action well.

That said, I haven't completely dumped TA. I just use support and resistance more often, but on manipulated charts like bitcoin for example, support and resistance, in conjunction with TA will yield the best results.

Thanks for reading, and I bid you godspeed in your trading endeavours.