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.

Support and resistance: what does a level really mean? — support and resistance diagram
Price bouncing between support and resistance

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
Support and resistance: what does a level really mean? — moving average crossover diagram
A fast moving average crossing a slower one

The support and resistance guide covers the methods.

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