Support and Resistance
Support is simply a technical analysis term used on a chart that means the level which the price of a cryptocurrency stops after a fall in price and reverses upwards and rises. The price level which the cryptocurrency rises upwards after a fall is known as the support level. For example, if the price of LTC is falling at reaches $200 and the fall stops and reverses back up and rises above the $200 price, then the price support level is $200.
Resistance is also a technical analysis term used on a chart that means the level which the price of a cryptocurrency stops after a rise and reverses downwards and falls. The price level which the cryptocurrency falls downward after a rise is known as the resistance level. For example, if the price of LTC is rising at reaches $300 and the rise stops and reverses downwards and falls below the $300 price, then the price resistance level is $300. The screenshot below shows the support and resistance levels of the LTC/BTC pair. The yellow line represents the different resistance levels and the white line represents the different support levels.
Cryptocurrency Pairs
Pairs simply means two cryptocurrencies or assets that can be traded for each other. It simply means assets which can be two cryptocurrencies or a cryptocurrency and a fiat currency that are paired with each in other to be exchanged for each other. Every exchange operates with pairs which means one asset can be exchanged for another asset. A trading pair can be two cryptocurrencies like LTC/BNB or a cryptocurrency and a fiat currency like LTC/USD. Example in a LTC/BNB pair, LTC can be traded for BNB or BNB can be traded for LTC.
Limit Order
A limit order is one of my favorite types of orders because it allows me to set my own price I want to buy or sell any cryptocurrency. A limit order is simply a type of order that gives the user the freedom to set any price that they want to buy or sell any cryptocurrency on the order book. For example, if the prices on the order book sell order for LTC is $200, $210, $215, $220… I don’t have to buy from the sell order book, I can set my own buy price at $195 and wait for the price to fall and my buy order to be filled by a seller. My limit buy order will be added to the buy order book. Also, if the prices on the order book buy order for LTC is $200, $150, $160, $175, I don’t have to sell to any of the bids or buy order book, I can set my own sell price at $250 and wait for the price to reach $250 and my sell order to be filled by a buyer. The limit order section allows you to set your own price and the amount of cryptocurrency you want to buy or sell.
Market order
Market order can also be beneficial if the trader wants to buy or sell any cryptocurrency immediately without wasting time. The market order chooses the best market price of the selected cryptocurrency pair and fills the buy order or sell order immediately. Example, if a trader selects the market order to buy 5 LTC on the LTC/BUSD pair, the market order will select the best price from the sell order book and fill the order immediately. This type of order is not added to the order book because buy or sell gets filled immediately. In the market order section, you can only add the amount of cryptocurrency you want to buy or sell and it will be filled immediately by choosing the best market price.
