Support and resistance
Also called: support, resistance, support level, resistance level, role reversal
Price zones where falling prices have previously stopped (support) or rising prices have previously stalled (resistance).
They are zones rather than exact lines, often formed at previous swing highs and lows, round numbers and heavy-volume prices. Broken resistance often becomes support and vice versa. Support is not a floor and resistance is not a ceiling; levels fail regularly, especially on news.
Learn more in these lessons
- Support and resistanceWhat are support and resistance, and how reliable are they?
- Breakouts, pullbacks and retestsWhat is a breakout, and how should you treat one?
- Candlestick formationsDo candlestick patterns predict price reversals?
- Reversal patternsWhat are head and shoulders and double top patterns, and how reliable are they?
- Building a repeatable chart-analysis processHow do you analyse charts consistently instead of by instinct?
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