Support and Resistance

Support and resistance are simply the levels where price has reacted before, and the working assumption is that where the market cared once, it’s likely to care again. It isn’t a law, but it’s a strong enough tendency to build a plan around. What a level actually is Resistance sits above current price, where sellers previously showed up in enough size to turn the market back down, while support sits below, where buyers did the same thing on the way back up. Neither is really a single price, but more a zone, bounded roughly by the wicks that tested it and the closes that respected it, since treating it as an exact line to the pip asks more precision of the market than it usually offers. ...