What it means
Support and resistance describe areas on a chart where market behaviour has changed before. Support is usually below the current price, while resistance is usually above the current price.
Why it matters in live markets
Support and resistance help traders organise chart context. They show where price has reacted before, but they do not guarantee that price will react the same way again.
Key points
- Support is where falling price has previously slowed, paused, or reacted.
- Resistance is where rising price has previously slowed, paused, or reacted.
- These areas are often better understood as zones rather than exact lines.
- Levels can hold, break, retest, or become unclear.
- Support and resistance are chart-reading tools, not forecasts.
Example
If price repeatedly slows near 1.2500 from below and repeatedly reacts near 1.2000 from above, traders may describe 1.2500 as resistance and 1.2000 as support.
Related glossary terms
Support, Resistance, Breakout, Retest, Trendline, Market structure, Volatility
Where you will see it
You will usually see support and resistance discussed in beginner chart education, technical analysis explainers, market-structure guides, and trading platform tutorials.