1. What Is Support?
Support is a price zone where a decline meets stronger buying and rebounds. It acts as a floor.
2. What Is Resistance?
Resistance is a price zone where a rise meets stronger selling and turns down. It acts as a ceiling.
3. How to Find Them
- Previous highs and lows — Price zones that repeatedly prompted a reaction in the past.
- Round numbers — Psychological price levels such as $60,000 and $70,000.
- Moving averages — The 50-day and 200-day averages can act as support or resistance.
- Fibonacci retracements — The 38.2% and 61.8% levels.
4. Breakouts
📊 Key Rules
Support breaks → A strong downward signal; price may fall to the next support.
Resistance breaks → A strong upward signal; old resistance becomes new support.
Fakeout — Price briefly breaks through and then returns. Confirm with volume.