Support and resistance: the market's memory
Support is a price where buyers have stepped in before. Resistance is where sellers have stepped in before. Price remembers these levels because people remember them.
The professional entry is near support, when risk is small: your stop-loss sits just below the level, so if you are wrong you lose a little. The amateur entry is after a big green candle, far from support, where the stop-loss would be huge.
- Buy near support. Sell, or take partial profit, near resistance.
- A level is a zone, not a single number. Give it room.
- When resistance breaks with volume it often becomes the new support.
On the live chart, switch on Levels to see S1, S2, R1 and R2 drawn from real swing points. Watch how price reacts around them before you trust them.
Open the live chart of ETH, switch on Levels, and watch how price behaves near S1.
Test yourself
Where is the professional place to buy in an uptrend?
- After a 15% green candle
- Near support, with a stop just below it ✓
- At resistance
- At any price, timing does not matter
Near support your stop-loss is close, so a wrong idea costs little. After a jump, the stop would be far away and the loss large.
What often happens to a resistance level after it breaks convincingly?
- It disappears forever
- It becomes new support ✓
- It becomes stronger resistance
- Nothing
Old resistance frequently flips into support because buyers who missed the breakout wait to buy the retest.
A support level is best thought of as…
- An exact number to the cent
- A zone where buyers have appeared before ✓
- A guarantee price will bounce
- A signal to use leverage
Levels are zones. Price often dips slightly through them before bouncing, which is why your stop needs a little room.
Roman Urdu mein parhein: Support aur resistance: market ki yaaddasht
Support woh qeemat hai jahan pehle khareedar aaye. Resistance woh jahan pehle bechne wale aaye. Qeemat in levels ko yaad rakhti hai kyunke log yaad rakhte hain.
Professional entry support ke qareeb hoti hai jab risk chhota ho: stop-loss level ke thora neeche, taake ghalat hone par thora nuksan ho. Amateur entry bari hari candle ke baad, support se door, jahan stop-loss bohat bara hota.
- Support ke qareeb khareedein. Resistance ke qareeb bechein ya kuch munafa lein.
- Level ek zone hai, ek number nahi. Usay jagah dein.
- Jab resistance volume ke saath toote to aksar naya support ban jata hai.
Live chart par Levels on karein taake asli swing points se bane S1, S2, R1, R2 dikhein. Bharosa karne se pehle dekhein qeemat un ke paas kaisa react karti hai.
Aham baat: Wahan entry lein jahan ghalat hone ki qeemat kam ho: support ke qareeb, chhalang ke baad kabhi nahi.
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