I’ve found that the biggest problem for many retail investors is not knowing when to enter the market. When the market is falling, they’re afraid of buying at a lower point; when the market is rising, they’re afraid of chasing the high and getting trapped. Actually, the answer to this problem is hidden in the candlestick charts—once you learn how to identify support and resistance levels, buying and selling become much simpler.

Support lines, simply put, are the “bottom line” when prices are falling. When the price drops to a certain level, bullish traders see an opportunity and buy in large quantities, causing the price to stop falling or even rebound. Drawing a line at this level is a support line. Conversely, resistance lines are the opposite concept—they are levels where the price tends to face selling pressure.

How can you accurately draw support lines? Let me teach you the most practical method. First, look at the candlestick chart of BTC or other cryptocurrencies, identify the previous low points, then find a second nearby low. Connect these two points with a horizontal line. If the price falls back to this line later and bounces, it confirms that this is indeed a support line. The next time the price dips near this support or resistance level, it could be your entry point.

But there’s a key detail many people overlook. Support and resistance levels are not fixed; they can switch roles depending on market conditions. For example, if a support line is broken, it may turn into a resistance line. Therefore, when judging the validity of support and resistance levels, you shouldn’t just look at the lines themselves—you also need to consider market trends, trading volume, and investor psychology.

In practice, I usually analyze several dimensions. The previous highs and lows are the most straightforward indicators. Important price levels, such as round numbers and historical significant levels, often serve as support and resistance. Moving averages are also very important; the 5-day, 10-day, and 20-day moving averages often act as support. Another underrated factor is the distribution of chips (market holdings); areas with high trading activity and volume often serve as support and resistance zones.

The buying logic is clear: consider buying near support levels because the price may find support and rebound. Conversely, near resistance levels, consider selling or holding off. Breaking through support or resistance levels often signals a trend reversal or continuation—this is one of the most important trading signals.

However, I want to remind you that simply mastering support and resistance theory is not enough. Many people learn a bit of theory and rush to act, only to get trapped badly. True experts combine support and resistance analysis with other technical indicators and fundamental information, which can significantly improve your win rate. Through continuous practice and reflection, you’ll find your sense of the market rhythm becoming more and more accurate.