Support and Resistance
Price levels where buying (support) or selling (resistance) has repeatedly emerged — the structural floors and ceilings of a chart.
Support is a level where demand has been strong enough to stop declines; resistance is where supply has capped rallies. They form at prior highs and lows, round numbers, and heavily traded prices where many positions were opened.
Levels matter because traders remember them: a broken resistance often becomes new support (and vice versa). The more times a level is tested, the more significant — until it finally breaks.
On StockSetups
Every StockSetups signal draws its key support and resistance directly on the chart and uses them to build the trade plan — resistance as the breakout trigger, support as the structural stop.
Related terms
See support and resistance on tonight's board.
StockSetups scans the whole US market after the close and draws the patterns, levels and indicators on every chart.
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