Support, resistance & key levels

You can read a candle now. This tier is about turning that into decisions — and it starts with the most useful idea in technical trading: price has memory.

Price reacts where it reacted before

Markets are people, and people remember prices. A level where buyers once stepped in tends to attract buyers again; a level where sellers once piled on tends to cap price again. Those repeat-reaction zones are support (a floor) and resistance (a ceiling).

They are zones, not hairlines

Do not obsess over the exact pixel. Support and resistance are areas where orders cluster. You draw them by connecting the spots price has turned at — and the more times a level has been respected, the more traders are watching it, and the more it matters.

Role reversal: the floor becomes the ceiling

Here is the move that separates intermediate traders from beginners. When price finally breaks a support, that old floor often flips into new resistance — and broken resistance becomes new support. The level keeps mattering; it just switches sides.

The levels worth marking

Beyond plain S/R, a few levels punch above their weight: the prior day’s and week’s highs and lows, big round numbers (1.1000, $2,000), and the session open. Mark a handful — a chart with three clean levels beats one buried under twenty lines.