Support & resistance, made simple
The floors and ceilings price keeps respecting, and how to use them to plan every trade.
Key takeaways
- Support is a floor where buyers keep stepping in. Resistance is a ceiling where sellers do.
- The more times a level holds, the more traders are watching it.
- Cheat code: place your stop just beyond the level, never right on it.
Price drops to the same level three times and bounces up each time. What is that level acting as?
Transcript
Ever noticed price bouncing off the same level... again and again? That's not luck. It's one of the most powerful ideas in trading, and by the end of this lesson, you'll spot it in seconds.
This is support. Think of it like a floor. Every time price drops down here, buyers step in... and push it back up. One touch... two... three. And the more times a level holds, the more traders are watching it, and the stronger it gets.
Resistance is the same idea, just flipped. It's a ceiling. Price pushes up, sellers take their profit... and down it comes. Floors and ceilings. Once you see them, you honestly can't unsee them.
Now, here's the cheat code most beginners miss. Never put your stop loss right on the level. Look at this wick. Price dips just below the floor... before it bounces. A stop sitting right on the line? Taken out. Put it just beyond the level instead, and your trade has room to breathe.
So, three things to lock in. Support is a floor, where buyers step in. Resistance is a ceiling, where sellers take over. And your stop goes just beyond the level... never right on it.
Take the quick check below to lock it in. You're already seeing the market differently. Next up: The breakout and the retest. Learn it. Practise it. Prove it.