Module 2 of 6 in Technical analysis
Trends, support and resistance
Market structure, trends and trading ranges, support and resistance, trendlines, breakouts, gaps and false signals.
6 lessons in this module. Progress is saved in your browser as you go.
Most chart reading describes structure: is the price making higher highs and higher lows, moving sideways, or falling? This module defines those patterns precisely, explains the zones traders call support and resistance, and spends as much time on false breakouts as on real ones.
By the end of this module you should be able to
- Identify uptrends, downtrends and trading ranges from swing highs and lows.
- Mark support, resistance and trendlines and explain why they are zones rather than exact prices.
- Describe breakouts, breakdowns, retests and gaps and why many of them fail.
Lessons in order
Module test
10 questions, chosen at random from a bank of 30 questions and balanced across this module's learning goals and difficulty levels. Every question comes with an explanation. You need 80% to pass, and you can retake it as often as you like with a fresh set of questions.
This module builds on
- Candlesticks and chart timeframes: Trends are read from candles on a chosen timeframe, explained there.
- Trading volume and liquidity on charts: Volume is commonly used to judge breakouts, with the limits explained there.