Support and resistance

Support is a price area where buying has repeatedly stopped a fall. Resistance is an area where selling has repeatedly stopped a rise. They exist because traders remember prices: people who missed a move wait to buy or sell when price returns.

How to draw them

1. Start on a higher timeframe (daily or 4-hour). Levels there matter more.
2. Look for places where price turned at least twice: swing highs, swing lows and big wicks.
3. Draw a zone, not a thin line. Price rarely turns at the exact same tick.
4. Prefer recent levels and round numbers (1.1000, 2,000, 100,000).

Role reversal

When resistance breaks, it often becomes support on the next retest, and broken support often becomes resistance. This "flip" is one of the most reliable ideas in technical analysis and the basis of many retest trades: wait for the break, then enter when price comes back to test the old level from the other side.

How strong is a level?

• More touches = more traders watching it.
• Sharp reactions (long wicks, fast moves away) show real orders there.
• But every touch also uses up orders. A level hit five times in a row is more likely to break.

Practise it

Open Supercharts, switch to the daily chart of XAUUSD or EURUSD and mark the three most obvious zones with the rectangle tool. Then drop to the 1-hour chart and watch how price behaves when it reaches them.