What are support and resistance levels technically?
Support and resistance levels are key concepts in technical analysis for stocks, forex, crypto, etc.
- Support: A price level where a falling asset tends to stop declining and bounce, because buyers step in strongly.
- Resistance: A price level where a rising asset tends to stall or reverse, because sellers become dominant.
They’re identified from previous swing highs/lows, trendlines, or round numbers. Prices often respect these zones until they’re broken with volume, after which roles can flip (support becomes resistance and vice versa).
Simple, but powerful for spotting potential entry/exit points. Always combine with other tools,nothing is guaranteed.
Support (S) is any price level where price seems to bounce off with significant momentum. Resistance (R) is the opposite
You are right, Godswill about the definition of 'Support and Resistance' but not completely right.
You can't talk about 'Support and Resistance' in Forex Trade without mentioning ' FLOOR, CEILING and STOP as these variables act as oppositions to each other.
While , 'Support' is the price FLOOR where buying interest STOPS the price from falling further.
'Resistance' on the other hand, is the price CEILING where selling pressure STOPS the price from rising .
Traders usually buy at Support and sell at Residence, expecting the price to bounce within this range.