Support and resistance are the foundation of price action trading. These zones represent areas where supply and demand have historically balanced, often producing repeatable reactions.
Identifying Levels
Look for areas where price has reversed multiple times, swing highs/lows cluster, or round numbers attract liquidity. Combine horizontal levels with trendlines for confluence.
Trading Applications
Use levels for entries, stop placement, and profit targets. A breakout above resistance that retests as support often offers high-probability long setups — see our AAPL breakout signal for a live example.
Browse more technical analysis insights or apply these concepts to market signals.