Support and resistance: what does a level really mean?
Support and resistance are zones where price has turned before — not exact lines, and not promises. Beginners treat them as walls; experienced traders treat them as areas where behaviour changes.
How do you draw them?
- swings, round numbers, moving averages, or something else
- how wide a zone you allow
- what you do when price "breaks" a level and immediately reverses
The support and resistance guide covers the methods.
Background: Support and resistance: how traders mark price levels
Support and resistance are the most widely used ideas in chart reading. How to find levels, why they work as zones, and what happens when they break.
What is support and resistance in forex?
Support is a price area where falling prices have tended to stop, and resistance is an area where rising prices have tended to stall, often because many orders cluster there.
What happens when support breaks?
The price often falls further, and the old support level frequently acts as resistance if the price comes back up to it.
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