Support & Resistance

What this unit covers

Understand support and resistance as price levels where past buying or selling left a visible mark, and why price tends to react there again.

By the end you will be able to

• Explain how support and resistance form from past buying or selling pressure.
• Describe why price reacts at these levels again because traders remember them.
• Judge a repeated reaction as a probability-based clue, not a guarantee.

How it starts: A Level That Held Twice

1. A stock falls to 240 rupees, then turns back up, twice in two months.
2. It falls to 240 rupees again, and you must decide whether to buy.
3. Why does the price keep turning at this exact number?

Words you will meet

Support

A price level where past buying pressure has pushed a falling price back up before.

Resistance

A price level where past selling pressure has pushed a rising price back down before.

In this module: Understanding Price Behaviour

1. Market Structure
2. Trends
3. Support & Resistance (this unit)
4. Candlesticks