Definition
Support is an area where buying interest previously appeared strong enough to stop or slow a decline. Resistance is an area where selling interest previously appeared strong enough to stop or slow a rally. In practice, levels are usually zones because markets are noisy and liquidity does not sit at one perfect price.
Quality filters
A useful level is visible, relevant to the current timeframe, connected to a meaningful reaction, and close enough to define risk. A weak level is drawn through random candles, far from current price, or selected only because it supports a desired trade idea. Acceptance above resistance can turn it into support; rejection below support can turn it into resistance.
Visual suggestion: show a level as a shaded zone with acceptance, rejection, retest, and failure labels.
Workflow
- Mark obvious highs and lows first.
- Convert exact lines into practical zones.
- Check whether price accepted or rejected the zone.
- Look for repeated reaction with decreasing quality.
- Define invalidation before entry.
- Do not trade a level without context.
Common mistakes
Beginners draw too many levels, treat old levels as permanent, ignore liquidity around the level, and enter before price gives useful information. A level is not a trade. It is a place to observe whether the market confirms, rejects, traps, or rotates.