Support vs Resistance
What is Support?
A support level is a price area where buying pressure has historically been strong enough to prevent further declines.
When price approaches support:
- Buyers may enter the market
- Sellers may take profits
- Price may bounce higher
Support can act as a potential entry area for long trades.
What is Resistance?
A resistance level is a price area where selling pressure has historically been strong enough to prevent further advances.
When price approaches resistance:
- Sellers may enter the market
- Buyers may take profits
- Price may reverse lower
Resistance can act as a potential entry area for short trades.
Support vs Resistance
The Support and Resistance Screen helps traders identify instruments trading near important market levels where buyers or sellers may become active.
The screen is divided into two tabs:
- Support — Instruments trading near significant support levels
- Resistance — Instruments trading near significant resistance levels
Together, these tabs help traders find:
- Bounce opportunities
- Pullback entries
- Reversal setups
- Supply and demand zones
- Breakout opportunities
Understanding Support Levels
Support represents a price area where buying pressure has historically been strong enough to prevent further declines.
When price approaches support:
- Buyers may enter the market
- Sellers may take profits
- Price may stabilize or bounce higher
Support levels are commonly used to identify potential long trading opportunities.
Support Columns
| Column | Description |
|---|---|
| Symbol | Instrument ticker |
| Last | Current market price |
| Chg | Price change |
| Chg% | Percentage change |
| S Lvl1 | Nearest support level |
| S Lvl2 | Intermediate support level |
| S Lvl3 | Major long-term support level |
| W% | Weekly performance |
| D% | Daily performance |
| 4h% | Four-hour performance |
| 1h% | One-hour performance |
| Chart | Mini price chart |
Support Level Hierarchy
S Lvl1
The closest support level to current price.
Typically represents recent market structure and short-term buying interest.
S Lvl2
An intermediate support level.
Often represents a larger historical demand zone.
S Lvl3
A major support level.
Represents a significant long-term area where buyers have repeatedly entered the market.
Trading Opportunities Near Support
Support Bounce
Suppose:
| Symbol | Last | S Lvl1 |
|---|---|---|
| EUR/CHF | 0.9184 | 0.9097 |
Price approaches support and begins showing bullish confirmation.
Potential Workflow
- Identify the support level.
- Wait for confirmation from price action.
- Enter a long position.
- Place a stop-loss below support.
- Target higher resistance levels.
Pullback in a Strong Trend
A common setup occurs when:
- Weekly trend is bullish
- Daily trend is bullish
- Price pulls back toward support
This frequently creates trend continuation opportunities.
Workflow
- Find strong-performing instruments.
- Locate pullbacks into support.
- Enter after buyers regain control.
Demand Zone Trading
Support levels frequently align with demand zones.
Common characteristics:
- Strong prior rally
- Aggressive buying activity
- Multiple historical bounces
When price revisits these zones, buyers may become active again.
Understanding Resistance Levels
Resistance represents a price area where selling pressure has historically been strong enough to prevent further advances.
When price approaches resistance:
- Sellers may enter the market
- Buyers may take profits
- Price may stall or reverse lower
Resistance levels are commonly used to identify potential short trading opportunities.
Resistance Columns
| Column | Description |
|---|---|
| Symbol | Instrument ticker |
| Last | Current market price |
| Chg | Price change |
| Chg% | Percentage change |
| R Lvl1 | Nearest resistance level |
| R Lvl2 | Intermediate resistance level |
| R Lvl3 | Major long-term resistance level |
| W% | Weekly performance |
| D% | Daily performance |
| 4h% | Four-hour performance |
| 1h% | One-hour performance |
| Chart | Mini price chart |
Resistance Level Hierarchy
R Lvl1
The closest resistance level to current price.
Usually the next area likely to be tested.
R Lvl2
An intermediate resistance level.
Often represents a larger historical supply zone.
R Lvl3
A major long-term resistance level.
Represents an area where sellers have repeatedly controlled price.
Trading Opportunities Near Resistance
Resistance Reversal
Suppose:
| Symbol | Last | R Lvl1 |
|---|---|---|
| GBP/CHF | 1.0636 | 1.0675 |
Price approaches resistance and begins losing momentum.
Potential Workflow
- Wait for bearish confirmation.
- Enter a short position.
- Place a stop-loss above resistance.
- Target nearby support levels.
Supply Zone Trading
Resistance levels often overlap with supply zones.
Common characteristics:
- Strong historical selling
- Sharp declines from the area
- Multiple previous rejections
When price revisits these levels, sellers may become active again.
Resistance Breakout
Not every resistance level holds.
When price repeatedly tests resistance while momentum continues building, a breakout may occur.
Typical Workflow
- Identify instruments approaching resistance.
- Monitor for breakout confirmation.
- Enter after resistance is broken.
- Use former resistance as new support.
Comparing Support and Resistance Setups
| Support Setup | Resistance Setup |
|---|---|
| Bounce from support | Rejection from resistance |
| Pullback entry | Profit-taking area |
| Demand-zone trade | Supply-zone trade |
| Long opportunity | Short opportunity |
| Buyers in control | Sellers in control |
| Bullish continuation | Bearish reversal |
Choosing the Right Tab
Use the Support Tab When Looking For
- Pullbacks
- Trend continuation opportunities
- Demand zones
- Long trade candidates
Use the Resistance Tab When Looking For
- Reversals
- Supply zones
- Profit-taking areas
- Breakout candidates
- Short trade opportunities
Together, both tabs provide a complete view of where market participants may become active, helping traders identify high-probability opportunities across multiple markets and timeframes.