Support and resistance
Quick answerSupport is a price where buying has stopped falls before; resistance is where selling has stopped rises. The more often price turns at a level, the more traders watch it.
The details
How to find them
- Old highs and lows where price turned.
- Round numbers, like 50 or 100.
- The prices everyone watches: yesterday's high and low, today's open, last week's and last month's high and low.
How traders use them
- Targets: take profit near the next resistance above (support below for a short).
- Stops: just past the level on the other side.
- Breakouts: a close through resistance often turns it into support.
Let the chart draw them
Key levels in Find Better Charts draws the levels traders watch for you, free for every member. MagniZone draws its own magnet zones too (how MagniZone picks its calls).
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