Technical analysis foundations · Lesson 1 of 3
Support and resistance basics
Understand price zones, reactions and failed breakouts.
7 minute read
Use zones, not perfect lines
Support and resistance describe areas where buying or selling pressure has previously mattered. They are not guaranteed turning points, and levels can break as market conditions change.
A useful analysis explains why a level matters, which timeframe is being considered and what would invalidate the idea.
Key takeaway
Use these concepts to understand the market, not to assume a particular outcome. Always define uncertainty and risk before making a decision.