What support and resistance actually are
A price where the market stopped several times before. Below price it is support, above it is resistance.
Why it works at all
Nothing magic. People remember prices.
- Someone who got trapped higher sells when it comes back to their entry
- Someone who missed the last bounce is waiting to buy at the same spot
Enough people acting at the same number and the number starts to matter.
They are zones, not lines
Drawing one exact line is the most common beginner error. Price rarely stops at 42,000 exactly — it stops around it. Treat it as a band, or you will be stopped out by a wick that never really broke anything.
Roles swap
Once a level breaks convincingly, support becomes resistance and the other way round. The former ceiling becomes the floor people buy against.
The usual mistake
Drawing ten lines. With ten lines every candle touches something and none of them mean anything. Two or three that the market actually reacted to are enough.
This is for learning and is not investment advice.
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