Introduction
Markets often react at certain price levels repeatedly.
These levels are known as support and resistance.
W/H (What / Why / How)
What is Support?
A level where buying tends to emerge.
What is Resistance?
A level where selling tends to appear.
Why does it matter?
Because these levels indicate:
• potential reversals
• key decision points
Insights from Financial Thinkers
Support and resistance concepts are widely used in technical analysis and reflect collective market memory.
Simple Understanding
Think of support as a floor and resistance as a ceiling.
Price tends to bounce between them.
Deeper Insight
These levels form because of:
• past buying and selling
• trader behaviour
• market memory
Real Market Behaviour
• price often reacts at these levels
• breakouts lead to strong moves
Practical Insight
Understanding levels helps:
• identify entry and exit zones
• manage risk
Concept Anchor
Support and resistance are areas where demand and supply interact.
Quick Recap
• Support → buying zone
• Resistance → selling zone
• Breakouts → strong movement
Closing Thought
Markets remember where important decisions were made.
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