What is support?
Support describes an area where buying interest has previously been sufficient to slow or reverse a decline.
It is better treated as an area or zone than as an exact price that must hold.
What is resistance?
Resistance describes an area where selling interest has previously been sufficient to slow or reverse an advance.
How traders identify these areas
Common references include previous swing highs and lows, repeated reaction zones, prior breakout levels and areas where substantial trading activity occurred.
What happens when a level breaks?
A break means price has traded beyond the area; it does not automatically prove a new trend. Traders often look for acceptance, follow-through or a retest.
Historical reactions can provide context, but there is no rule requiring price to reverse at the same area again.
Common mistakes
Drawing too many levels
If every price is marked as support or resistance, the concept loses practical meaning.
Treating levels as exact
Real markets frequently overshoot or front-run visually obvious prices.
Assuming every breakout is genuine
Price can move beyond a level and quickly return inside the prior range.
Key takeaways
- Support and resistance are analytical areas, not guaranteed reversal points.
- Repeated historical reactions can make an area useful for context.
- Breakouts require interpretation; trading beyond a level alone does not guarantee continuation.
- Market structure, volume and timeframe can provide additional context.
Sources & further reading
This lesson is educational material. Market structure, exchange rules, fees, margin requirements and derivatives mechanics can differ by venue and can change over time. Verify current rules with the venue you use.