Support & Resistance

Support and resistance are the most fundamental concepts in technical analysis. Every strategy you'll learn in this academy builds on them.

What Is Support?

Support is a price level where buying interest is strong enough to prevent further decline. Think of it as a floor — when price drops to this level, buyers step in.

• Price bounces off support (demand exceeds supply)
• The more times a level holds, the more significant it is
• When support breaks, it often becomes resistance

What Is Resistance?

Resistance is a price level where selling pressure prevents further advance. Think of it as a ceiling.

• Price gets rejected at resistance (supply exceeds demand)
• Breakouts above resistance can signal trend continuation
• Broken resistance often becomes support

How to Identify Key Levels

1. Swing highs and lows — The most obvious levels. Where did price visibly bounce or reject?
2. Multiple touches — Levels tested 2-3+ times are more significant
3. Round numbers — Psychological levels ($100, $50,000) act as natural S/R
4. High volume areas — Levels where heavy trading occurred often act as S/R

The Role Reversal Principle

When support breaks, it becomes resistance. When resistance breaks, it becomes support. This polarity principle is one of the most reliable concepts in trading.

Watch for price to break a level, then come back to retest it from the other side. This retest often provides a high-probability entry.

Key Takeaway

Every trade should reference a support or resistance level. Whether you're trading Elliott Wave, SMC, or supply and demand — levels are the foundation.