Glossary
Support and Resistance
Technical Analysis
Support is a price area where buying has previously halted declines; resistance is where selling has previously halted advances.
These levels come from prior swing highs and lows, consolidation zones, round numbers and session highs and lows. They matter because a large number of resting orders — stops, limits and options strikes — cluster around them.
Levels are zones, not exact prices, and they flip roles: broken resistance frequently acts as support afterwards. Trading them means defining the level, waiting for a reaction, and placing the stop just beyond the zone.