🧱 Support & Resistance
🧱 Support & Resistance
(How Price Levels Shape the Market)
Support and Resistance are two of the most important concepts in technical analysis.
They’re like invisible walls where price tends to bounce or reverse.
🧠 Simple Definitions
Support = A price level where buyers step in and stop the price from falling.
Resistance = A price level where sellers step in and stop the price from rising.
📌 Support holds the floor. 📌 Resistance hits the ceiling.
Example:
🔍 Why Are They Important?
Good entry/exit points
Helps with stop-loss placement
Shows where momentum may shift
When price breaks through a level, it often becomes the opposite:
Broken support → becomes resistance
Broken resistance → becomes support
🛠 How to Identify Them
Look at the candlestick chart
Find places where price bounced multiple times
Draw a horizontal line across those price levels
Confirm with volume spikes or reaction patterns
📌 They’re zones, not exact prices. Don’t expect perfect lines.
🧠 Tip for Traders
More touches = stronger level
Watch for fakeouts (when price briefly breaks the level and reverses)
Combine with indicators like RSI or Bollinger Bands for stronger signals
🤖 Mandalyze AI Insight
Mandalyze AI automatically detects key support & resistance levels using:
Historical price data
Volume analysis
Reversal patterns
It then explains these levels in clear language — so you can act faster with confidence.
🧪 In Summary
Support & resistance help you see the structure of the market. They’re the battle lines between buyers and sellers.
📊 Learn them well — they’re in nearly every strategy.
🧭 Next Lesson: What is a Candlestick Chart?
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