Beginner 5 min read
Support & resistance, drawn properly
The two lines every chart needs. Where to draw them, and when they break for real vs. fake.
Support is a price level where buying pressure has repeatedly overwhelmed selling; resistance is the mirror — where sellers keep showing up. Draw them from closes, not wicks, unless you're specifically mapping liquidity sweeps.
The more times a level is tested, the more traders are watching it — which paradoxically makes it both more significant and more likely to eventually break, because everyone's stop is sitting in the same place.
A real break closes beyond the level with follow-through volume. A fake break wicks through and closes back inside — that's often a liquidity grab, not a genuine shift in supply and demand.