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Support and Resistance

The levels where price repeatedly reacts.

Support and Resistance illustration

Support is a price area where buying has repeatedly overwhelmed selling; resistance is the opposite. These are zones, not thin lines.

The more times a level is tested and respected, the more it matters. A broken level often flips role: support becomes resistance and vice versa.

Enter at reaction, not at random. Waiting for the market to confirm a level lowers your risk.

Place stops beyond the level, not on it, so normal noise does not stop you out.

Takeaways

  • Support and resistance are zones where price repeatedly reacts.
  • The more a level is respected, the more it matters; broken levels often flip roles.
  • Enter on reaction, not at random, and place stops beyond the level.

Self-check

What happens to a broken support level often?

It can flip and act as resistance.

Trading involves risk. Educational only, not advice. Mark it complete to bank progress.

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