Support and resistance

Updated 2026-09-20

Definition

Price areas where price has stopped in the past: support below price, resistance above.

Why it matters

They are drawn as zones, not exact lines. When broken they often switch roles: a broken support becomes resistance. They are the basis of stops, targets and entries.

Practical example

EUR/USD bounces twice at 1.0900: that zone is a support. If it breaks it and then retests from below, it can act as resistance.

Learn more

Course lesson: Trend, support and resistance: the structure of price

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Full glossary

Educational content, not financial advice. Trading involves risk.