Price Action · Guide · 3 min read
Support and resistance explained
How to mark levels that matter, and what a retest means.
Support is a price area where buying interest has previously stopped a fall. Resistance is an area where selling interest has previously stopped a rise.
Drawing levels
- Start with higher timeframes (daily, weekly); they matter more.
- Mark zones rather than exact lines; price rarely turns at a single tick.
- Prefer levels that price has respected more than once.
Role reversal
When price breaks above resistance and later returns to that level, the old resistance may act as support (and the reverse for support). Traders call the return a retest.
Be careful
Breakouts can fail. Decide your stop-loss before you enter, and size the position by risk.
This guide is educational and is not investment advice.
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