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Support and resistance

Price zones where demand (support) or supply (resistance) tends to halt or reverse movement — confirm with volume and structure.

Who it's for — Anyone drawing levels on the chart who wants to know when a level truly «holds» — and when a break has enough participation.

Support is a price band where demand stopped or reversed a decline. Resistance is where supply stopped or reversed a rally. They are not magic lines: memory of past negotiation, often reinforced by volume and nodes on Volume Profile.

In plain terms — Support = «floor» where price bounces; resistance = «ceiling» where it is rejected. They hold until someone crosses with conviction.

Support and resistance Horizontal levels and bounces R S
Horizontal levels — bounces, tests, and breakouts.

How levels form

Origin Example
Prior highs/lows Double top, swing low
Consolidations Area with heavy volume
Profile POC, HVN, Value Area edge
Round numbers 100, 50,000 — psychological barriers
Trend line Dynamic support/resistance

Volumetric confirmation

Signal Reading
Bounce on high volume at support Demand present
Break with rising volume More credible breakout
Break on low volume
High volume, little movement

Common mistake — Buying support «because it always holds» — news, gaps, or thin liquidity can slice through without respect.

Example — Stock tests €24 three times with rising positive delta: live support. Break above €28 on falling volume: wait for retest or confirmation before chasing.

Summary card

  • Support: demand zone / pause in decline.
  • Resistance: supply zone / pause in rally.
  • Rule: level + volume + structure together.