Support & Resistance

Glossary · Technical Analysis

Support and resistance are price zones where buying or selling repeatedly stops a move — support catches falls, resistance caps rallies. They form where unfilled orders and trapped positions cluster, which is why old resistance often becomes new support after a break. Experienced traders treat them as zones, not exact lines.

"Everyone's watching the same level — which is exactly why price wicks through it before it holds."

Mark the levels a tired trader could find: daily and weekly swing highs and lows, round numbers, zones where price spent time and printed volume. Strength comes from timeframe and reaction quality — a weekly level that's rejected price three times outranks anything on the 15-minute. And draw zones, not lines: give a major maybe half a percent of width, because the market doesn't respect your pixel-perfect ray.

The trap is that obvious levels are where everyone parks the same orders — bids at support, stops just beneath it. That cluster is the prize: price wicks through, fires the stops, fills the bigger player's buy, and reverses. That's a stop hunt, and it happens at good levels precisely because they're good. Trade around it: enter inside the zone rather than at its edge, put the stop beyond sweep distance (one ATR past the level beats one tick past it), and let a close through the zone — not a wick — be what proves you wrong.

Read the levels off a live chart

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Questions

What is Support & Resistance in crypto trading?

Support and resistance are price zones where buying or selling repeatedly stops a move — support catches falls, resistance caps rallies. They form where unfilled orders and trapped positions cluster, which is why old resistance often becomes new support after a break. Experienced traders treat them as zones, not exact lines.

How would a trader say it?

Everyone's watching the same level — which is exactly why price wicks through it before it holds.

Part of the Crypto Jargon glossary — every term, decoded the way a trader would say it.

Crypto Jargon

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