🧱 Support & Resistance
Last updated
Last updated
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.
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.
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
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.
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 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.
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?
