Support and resistance are price levels where buying or selling pressure has historically been strong enough to reverse or stall a move. They are the backbone of most technical trading systems.
HOW LEVELS FORM: A level forms when price reverses sharply from a point multiple times. Each test strengthens the level — and also depletes the resting orders sitting there.
WHEN LEVELS BREAK: A confirmed break occurs on a close beyond the level, ideally with above-average volume. The old resistance becomes new support (and vice versa). False breaks are common near psychological round numbers.
MULTI-TIMEFRAME CONFIRMATION: A level visible on the daily chart is far more significant than one on the 15-minute chart. Check higher timeframes first — trade what the daily sees.
