> For the complete documentation index, see [llms.txt](https://faq.midas-club.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://faq.midas-club.com/faq-en/faq-midas-up/support-and-resistance-levels.md).

# Support and resistance levels

<table data-view="cards"><thead><tr><th></th><th data-hidden data-card-cover data-type="image">Cover image</th></tr></thead><tbody><tr><td><p>How do levels work:</p><p>➡️<a href="https://youtu.be/Hvli0puLco0">Watch on YouTube</a></p><p>➡️<a href="https://youtu.be/Hvli0puLco0">Watch on VK</a></p></td><td><a href="/files/e406f5e129073b46b3bded0f30fa29efd969b74d">/files/e406f5e129073b46b3bded0f30fa29efd969b74d</a></td></tr><tr><td><p>How to trade using levels:</p><p>➡️<a href="https://youtu.be/79P9LUfZtsM">Watch on YouTube</a>
<br>➡️<a href="https://vk.com/video-228172732_456239128">Watch on VK</a></p></td><td><a href="/files/46cf88e4c634693953608cf04406e3dec84d2b99">/files/46cf88e4c634693953608cf04406e3dec84d2b99</a></td></tr><tr><td>Advanced strategy:
<br>➡️<a href="https://youtu.be/j1w00z7IbK0">Watch on YouTube</a>
<br>➡️<a href="https://vk.com/video-228172732_456239145">Watch on VK</a></td><td><a href="/files/f27bc1454b408f9d5cb73e8be04dfff7bf226393">/files/f27bc1454b408f9d5cb73e8be04dfff7bf226393</a></td></tr></tbody></table>

## Level marking on the chart

The indicator automatically highlights all significant levels, while eliminating human subjectivity and even showing the strength of the level, helping you quickly understand which zones are key for price.

* <mark style="color:green;">**Green levels**</mark> - is support that keeps price from falling lower
* <mark style="color:red;">**Red levels**</mark> - is resistance that prevents price from rising higher
* Weak levels are zones where price was reversed only once; they do not always work
* Strong levels are zones where price was held back and reversed 2 times or more; they act as key support and resistance

{% hint style="info" %}
You can set up [an automatic alert](/faq-en/alert-setup.md) for bounces off levels and receive notifications in TradingView or Telegram, fully automating your analysis!
{% endhint %}

{% tabs %}
{% tab title="Strong support" %}

<figure><img src="/files/165af6c1515b4d8c6223bb0341755229759de71e" alt=""><figcaption></figcaption></figure>

Using the daily Bitcoin chart as an example, you can see how a strong support level has held price back many times, preventing it from falling lower, and each time price makes a good bounce when it reaches this level.

Knowing this level, you could have taken profits on short positions several times in time and built long positions.
{% endtab %}

{% tab title="Weak support" %}

<figure><img src="/files/9f04e27e84d3a8f7c16f587bd9f78961234dc25a" alt=""><figcaption></figcaption></figure>

In the example, we see weak support - this is when a price move formed a level, but it has not yet been confirmed by a repeated bounce, so it is considered "weak".

Here the price decline often slows down, there may be a bounce, but the odds of a reversal are lower than with a strong support level.
{% endtab %}

{% tab title="Strong resistance" %}

<figure><img src="/files/386dd461a38b87d187cd6184a0bdf3ea3eefaf38" alt=""><figcaption></figcaption></figure>

Using the daily Ether chart over the last 4 years as an example, you can see how a strong resistance level has held price back for several years and turned the uptrend into a downtrend when price reaches this resistance.

Knowing this level, you could have taken profits on long positions several times in time and opened short trades.
{% endtab %}

{% tab title="Weak resistance" %}

<figure><img src="/files/181f066ef02b2c4e50ab6eaf3e85a46b57928411" alt=""><figcaption></figcaption></figure>

In the example, we see weak resistance - this is when a price move formed a level, but it has not yet been confirmed by a repeated bounce, so it is considered "weak".

Here the price rise often slows down, there may be a bounce, but the odds of a reversal are lower than with a strong resistance level.
{% endtab %}
{% endtabs %}

## Using levels in trading

Price always moves from level to level. Correctly identifying levels will help you see important zones in the market and find the best entry and profit-taking points:

* When price approaches a level, you need to see where it consolidates - if above, the scenario is bullish; if below, the scenario is short
* It's better to open positions from strong levels, but not "into the level"
* It's also worth taking profits when price approaches a strong level

Trading levels is one of the most popular trading strategies, which is ideal even for beginner traders thanks to clear entry points, stops, and targets:

* Bounce trading - in a weak trend or range, find the strongest levels that will produce a reaction, wait for the bounce to begin, and enter in the direction of the bounce
* Breakout trading - in a strong trend, wait for the level to break, and on the retest (return to the broken level and bounce) enter in the direction of the breakout

{% hint style="success" %}
First, try the simplest [level-based trading strategy](broken://pages/0e079cf820f867cc577b738bbebf9c43e290c49b#strategiya-torgovlya-ot-urovnei) from the indicator developer
{% endhint %}

{% tabs %}
{% tab title="Long bounces" %}

<figure><img src="/files/6df89fa901d20ae8443f19fde6bd28c66e1701d2" alt=""><figcaption></figcaption></figure>

Using the TON daily chart as an example, we can see how powerfully the strong level worked for bounces without any additional factors.
{% endtab %}

{% tab title="Short bounces" %}

<figure><img src="/files/bbc6ba68e3b08e2459434f3dcf47e08e8ba51535" alt=""><figcaption></figcaption></figure>

In this same TON daily chart example, we can see that there was a resistance level all this time, at which price not only bounced, but also reversed and went back down to the support level.
{% endtab %}
{% endtabs %}

## Level-based trading strategy for beginners

<div align="left"><figure><img src="/files/605f49a54236983e6087a487689cf64c090bb973" alt="" width="563"><figcaption><p>An example of trading a signal within a bounce from a support level</p></figcaption></figure></div>

We use signals and **horizontal support and resistance levels**:

-when price bounces from a support level, wait for a signal <mark style="color:green;">**BUY**</mark> and open <mark style="color:green;">**long**</mark>

-when price bounces from a resistance level, wait for a signal <mark style="color:red;">**SELL**</mark> and open <mark style="color:red;">**short**</mark>

💡Best works in trend continuation and in a range on higher time frames

💡Against the trend, only small bounces with short targets can be traded

💡Experienced traders can enter trades earlier, without waiting for a signal

## Advanced level trading strategy

<div align="left"><figure><img src="/files/c4e08cd2db7780da385667c29d53a6791c658dfd" alt="" width="563"><figcaption><p>An example of a bounce from a support level + the lower boundary of a price channel + a horizontal volume shelf</p></figcaption></figure></div>

We use **horizontal levels** of support and resistance, [**price channel**](/faq-en/faq-midas-up/price-channel.md), [**moving averages**](/faq-en/faq-midas-up/ema-moving-averages.md), [**horizontal volumes**](/faq-en/faq-midas-up/horizontal-volume-profile.md) and [**liquidity heat map**](/faq-en/faq-midas-up/liquidity-heatmap.md):

1\) look for strong horizontal levels on the chart that coincide with the boundaries of the price channel and horizontal volume areas

2\) confirm the importance of the level by the presence of an EMA or liquidity in the form of stops

-when price approaches an important support zone, wait for a signal <mark style="color:green;">**BUY**</mark> and open <mark style="color:green;">**long**</mark>

-when price approaches an important resistance zone, wait for a signal <mark style="color:red;">**SELL**</mark> and open <mark style="color:red;">**short**</mark>

💡It is not necessary to wait for all factors to match - 2-3 are enough

💡Just remember - the more matches there are, the higher the chance the signal will work out

💡Works best in the direction of the current trend and in a range

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