Support and resistance are price areas where markets repeatedly react - not because of magic lines, but because traders remember prices.
If you understand this properly, many other concepts become easier:
On almost every chart, price:
These "stopping areas" are support and resistance.
Support is a price area where buyers tend to step in and stop the fall.
Resistance is a price area where sellers tend to step in and stop the rise.
Drawing one thin line and expecting a price to respect it perfectly.
Support and resistance are zones of interest, not exact prices.
| Type | What It Is | Example |
|---|---|---|
| Horizontal | Old highs & lows | Previous top/bottom |
| Trend-based | Moving with trend | Rising support |
| Psychological | Round numbers | 20,000 / 50,000 |
| Dynamic | Changes over time | Moving averages |
When price breaks support, that same area often becomes resistance.
When price breaks resistance, that area often becomes support.
This happens because traders change their bias, not because of indicators.
Support & resistance reduce risk, they do not eliminate it.
