Support & Resistance

Support is a price level where buying interest is strong enough to prevent further decline. Resistance is a level where selling pressure prevents further advance. These levels form because of market memory, institutional order clustering, and the psychological tendency of traders to act at round numbers and historical turning points.

How Support and Resistance Are Used in Trading

Traders buy at support and sell at resistance in range-bound markets. The more times a level has been tested without breaking, the stronger it is considered. However, when support or resistance finally breaks, the resulting move is often significant as all the orders at that level are triggered simultaneously.

Former support becomes resistance once broken, and vice versa. This "polarity" principle is one of the most reliable patterns in technical analysis. A broken support level that gets retested as resistance provides a low-risk short entry point.

Dynamic support and resistance from indicators like EMA, Bollinger Bands, and Ichimoku Cloud adapt to changing prices. These levels complement static horizontal support/resistance by accounting for the current trend direction and volatility conditions.

Access via API

Get Bollinger Bands, Ichimoku levels, and moving averages for dynamic support/resistance levels.