Support & Resistance: Reading Key Levels

Support and resistance are the price levels where the market has repeatedly changed its mind. They are the foundation every other concept is built on.

Support is a level where falling price tends to stop and bounce — buyers consistently step in. Resistance is where rising price tends to stall and reverse — sellers take control. They aren't magic lines; they are memory. Traders who got in or out at a price remember it, and place orders there again.

How to mark levels that matter

• Use highs and lows, not the exact tick. Treat S/R as zones, not razor-thin lines — price overshoots.
• More touches = stronger. A level rejected three times is more significant than one tested once.
• Higher timeframe wins. A daily level outranks a 5-minute level. Mark the big ones first.
• Watch the reaction, not just the level. A long wick or an engulfing candle at the level confirms it is being defended.

Trading with key levels

The two classic plays are the bounce (enter as price rejects a level in the trend's direction) and the breakout (enter as price decisively closes through a level and ideally retests it from the other side). Combine levels with candlestick rejection and you have a complete, repeatable entry framework.