Support and Resistance: The Basics Every Trader Needs
How to find support and resistance levels on a chart and use them to plan entries, stops and targets.
By Dave · · 7 min read
Example post. This shows how blog posts look on the site. Edit it, replace it, or ask Claude to delete it.
Support and resistance are price areas where buyers or sellers have shown up before. They’re the foundation of most trading plans.
Support
An area where price has stopped falling and bounced. Buyers stepped in there before, and they may again.
Resistance
An area where price has stopped rising and turned down. Sellers have been active there.
How to use them
- Mark obvious levels on a higher timeframe first: prior highs and lows, and areas price reacted to several times.
- Plan your stop just beyond the level, where your idea is clearly wrong.
- Set targets at the next level in the direction of your trade.
Think of levels as zones, not exact lines. Price often overshoots a little before reacting.
Educational content only, not financial advice. Trading involves risk of loss. See the full disclaimer.