Course › Level 2: How traders read a chart

Support and resistance

Price doesn't move randomly through every number. It reacts at levels, prices where it has turned around before.

• Support, a floor. Price fell to it, buyers stepped in, price bounced. Often more than once.
• Resistance, a ceiling. Price rose to it, sellers stepped in, price dropped.

How to find them

Zoom out on H1/D1 and mark the 2–3 places where price has clearly turned multiple times. Draw a horizontal line at each. Don't mark twenty lines, if everything is a level, nothing is.

Why levels matter so much

They're where the decisions happen. A trade taken at a level (buying at support in an uptrend) gives you a clear invalidation point nearby: if price breaks the floor, you were wrong, get out cheap. A trade taken in the middle of nowhere gives you nothing to lean on, which is why mid-range entries are one of the classic beginner account-killers.

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