Support & Resistance

Support is a price level where buyers are strong enough to prevent the price from falling further. Resistance is a price level where sellers are strong enough to prevent the price from rising further.

These levels are identified by looking at historical price reactions — places where the price reversed or consolidated multiple times.

**Key rules:** - Previous resistance can become new support (and vice versa) — this is called a "flip zone". - The more times a level is tested, the stronger it is considered.