If you learn only one thing in technical analysis, make it this.
Support is a price area where buyers have stepped in before and stopped a fall. Resistance is where sellers have stepped in and stopped a rise. Price remembers.
Why levels work
Traders remember where price turned. Buyers who missed the last bounce wait there again. Sellers who got trapped want out at break-even. Orders pile up, and the level becomes self-fulfilling.
Zones, not laser lines
Price rarely turns at the exact same pip. Draw a zone that covers the wicks and bodies of the turning points.
Wick says
Think of support like a trampoline, not a concrete floor. Price can sink into it a bit before bouncing.
What makes a level strong
- More touches.
- Higher timeframe (daily beats 5-minute).
- Sharp turns away from it.
- Round numbers and previous day or week highs and lows.
Rookie mistake
Drawing 25 lines on one chart. If everything is a level, nothing is. Keep the obvious ones.
Key takeaways
- Support = buyers' floor; resistance = sellers' ceiling.
- Draw zones on higher timeframes first.
- More touches and sharper reactions = stronger level.