In one lineSupport and resistance are areas where price has previously reacted.
Think in zones, not exact lines
Resistance zone
Support zone
Support zone
Price does not have to react at the exact same number every time. A more realistic approach is to mark an area of interest.
A simple EUR/USD example
Imagine EUR/USD has reacted several times around 1.1000.
You might treat the area around 1.1000 as important, but that does not mean price must reverse there again.
The useful question is:
How does price behave when it returns to this area?
What can happen at a level?
- Price can reject the area.
- Price can pause and consolidate.
- Price can break through it.
- Price can break through and later retest it.
Common mistake:Treating support or resistance as a guaranteed turning point. It is an area to observe, not a promise.
Remember this
- Use zones rather than perfect lines.
- More reactions can make an area worth watching.
- Always combine the area with current price behaviour and context.
Educational content.
This lesson is provided for general educational and informational purposes and is not personal financial or investment advice.