How to draw support & resistance

Support and resistance is the bedrock of nearly every method: support is a zone below price where buyers tend to step in; resistance is a zone above where sellers tend to appear. Mark them clearly and many decisions gain a basis.

Where to find key levels

• Prior highs and lows: obvious past turning points get revisited;
• Round numbers: psychological prices like 100, 1000, 68,000;
• High-volume zones: price bands where lots of trading occurred;
• Dynamic levels: moving averages, prior-day highs/lows, VWAP.

Draw zones, not exact lines

Markets rarely reverse to the penny, so a price band (zone) beats a precise line. The more it's tested and held, the more it matters — though too many tests can also mean it's about to break.

Role reversal after a break

A key rule: once resistance is decisively broken, it often becomes new support (and vice versa). That's why "break → retest → enter" is a favorite conservative approach; use volume to judge if the break is real.