How to support and resistance

Posted 1h ago

Support and resistance are key price levels in trading where a trend tends to pause or reverse. Think of support as a price floor where buying interest is strong enough to overcome selling pressure, preventing the price from falling further. Resistance, conversely, is a ceiling where selling pressure is sufficient to stop the price from rising. A common misconception is that these levels are exact lines, when in reality, they function more like zones due to fluctuating market sentiment. Knowing these helps traders identify potential entry and exit points for managing risk

1 comment

Prop Firm Bridge1h ago
Spot on description! Support and resistance zones are essential for mapping out market structure, helping you define clear areas for entries, targets, and stop losses. When trading on a funded account, respecting these zones is crucial for protecting your daily loss limits and avoiding impulsive entries right into a heavy liquidity wall. Instead of treating them as exact single ticks, look at them as broader areas where institutional orders often cluster. How do you personally trade these levels? Do you wait for a clean bounce, or do you trade the breakout when the zone finally fails? Drop your methods below!
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