Support and Resistance
NeutralReliability: HighAlso called · support line, resistance line, horizontal level
A level where price has repeatedly stopped. Break it and the roles swap.
How to spot it
- A price area that has reacted at least twice
- It often overlaps with heavy-volume areas
Why this shape forms
Stopping repeatedly at one price is a record that orders were actually sitting there. It is a footprint, not a feeling.
Where it actually means something
The timeframe you drew it on is everything. A level that matters on the daily can be meaningless on a 5-minute chart.
What else to check
Count the touches and look at the volume on each one. Three or more reactions is hard to call coincidence.
This means you're wrong
A decisive close through it flips the level into the opposite role.
The mistake beginners make
Treating it as an exact point. Support and resistance are zones, not lines.
Easy to confuse with
Treating it as a zone rather than a line is closer to how markets behave. Price rarely stops at one exact number.
Real examples from the community
Patterns are probabilistic tendencies, not guarantees. This is not investment advice.