What are support and resistance?

Support is an area where buyers have previously been willing to absorb selling. Resistance is an area where sellers have previously appeared. These are zones of interest, not promises that price must reverse.

A level can break, become resistance after acting as support, or fail without a clean signal. The more often a level is tested, the more important it may look—but repeated tests can also weaken it.

Use levels to plan a decision: where would the idea be invalid, where might price react, and how much room is available before the risk becomes too large?