Support and Resistance Explained in Plain Words
The idea
Support is a price area where falling prices have often paused or turned up before. Resistance is a price area where rising prices have often paused or turned down before.
Why they appear
Many buyers and sellers remember the same prices. When price comes back to a level where it reacted before, people act again, so the level can matter again.
How to mark them
Zoom out to a higher time frame. Look for places where price reacted more than once. Draw a zone, not a thin line, because price rarely turns at an exact number.
When levels break
Levels do not hold forever. If price moves through a level with strength, the old resistance can later act as support, and the other way round. Sometimes it does not, so waiting for confirmation and planning for being wrong both matter.
Key points
- Support and resistance are zones, not exact lines.
- More touches make a level more noticeable, not certain.
- Higher time frames carry more weight.
- Always decide your risk before you act.
Trading involves risk. This article is for education and information only. It is not investment advice, and no course or method promises a return or removes the risk of loss.