Support
Support is a price area where buying pressure has previously stopped a decline. Price often reacts upward from these levels.
Charting Basics · Lesson 4
Support and resistance: where price reacts
Support and resistance are key areas where price tends to react. They represent zones where buyers or sellers have previously taken control.
Resistance
Resistance is a price area where selling pressure has previously stopped an advance. Price often reacts downward from these levels.
Why these levels matter
Support and resistance levels act as decision zones. Traders watch these areas to enter, exit, or confirm trades.
Rejection
Price touches a level and moves away, showing strong buying or selling interest.
Breakout
Price moves through a level, often leading to continuation in that direction.
Retest
Price returns to a broken level to confirm it before continuing the move.
Levels are zones, not exact lines
Support and resistance are areas, not precise prices. Expect some variation around the level.
Common mistake
Beginners treat levels as exact lines and enter trades too early. Waiting for confirmation improves decision quality.
Simple rule
The more times a level is tested and respected, the more important it becomes.
Apply this in real market conditions
Use Coinstrooper’s live market tools to connect this lesson with real crypto data.
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