Glossary
Support and Resistance
Price levels where buying or selling pressure has historically stopped or reversed a move.
Support acts as a price floor and resistance acts as a ceiling. Traders use these levels to plan entries, exits, and stop placements. Broken support often becomes resistance and vice versa.
Key Points
- More touches at a level increase its significance.
- Volume confirmation strengthens breakout signals.
- Best used with other indicators rather than alone.