What is support and resistance?

What Is Support and Resistance?

Support is a price level where buying tends to appear and price bounces up. Resistance is where selling tends to appear and price reverses down. They can be previous highs/lows, round numbers, or trendlines. Traders use them to place entries (e.g. buy near support), stop losses (below support or above resistance), and targets (next resistance or support). Levels can break: support can become resistance and vice versa. In crypto, levels can shift quickly. Use support and resistance as a guide, not a guarantee.