Support & Resistance
Education only · our voice · free public data
Definition
Support is a price zone where buying has historically been strong enough to halt declines; resistance is a zone where selling has halted advances. Auto-detected levels are drawn from prior swing highs/lows, prior closes, and high-volume price areas.
How to read it
Treat levels as zones, not exact lines. The more times a level is tested and the more volume transacted there, the more significant it is. A decisive close through a level (ideally on above-average volume) is a break; after a break, old resistance frequently becomes new support and vice-versa (polarity flip / role reversal). Round numbers and prior all-time highs often act as psychological levels.
How practitioners use it
Used as context among multiple indicators — never as a standalone signal to act.
Less common professional uses
False breaks (stop-runs) are the dominant failure mode: price pierces a level to trigger stops, then reverses back inside the range. Wait for a retest/hold or a closing basis rather than an intrabar poke. Levels decay with time and regime; a level from a different volatility regime or from years ago is weaker than a fresh one. Weight recent structure more heavily. Volume-profile confirmation: high-volume nodes (value areas) make more durable S/R than a single wick, and low-volume gaps between nodes tend to be traversed quickly.
Sources & provenance
Classic price-action / Dow theory
This page is educational content published by Pachira Aquatica Global LLC. It is not investment advice and not a recommendation.