What Is Support?

Support is a price level where buying interest is strong enough to stop the price from falling further.

• Acts like a “floor” for price
• Buyers step in near this level
• Price often bounces upward

What Is Resistance?

Resistance is a price level where selling pressure prevents the price from moving higher.

• Acts like a “ceiling” for price
• Sellers become more active
• Price often pulls back downward

Why These Levels Matter

Support and resistance levels reflect trader psychology. They form where many people previously bought or sold.

These areas often become decision points for future price movement.

Breakouts & Breakdowns

When price breaks above resistance, it’s called a breakout. When price falls below support, it’s a breakdown.

• Old resistance can become new support
• Old support can become new resistance
• Volume often increases during breaks

Keep It Simple

You don’t need perfect lines. Focus on obvious levels that price has respected multiple times.

Clean charts lead to better decisions.