Charts & technicals
Support and resistance
Price levels where buying or selling has repeatedly appeared in the past.
How it works
Support is a level where falls have previously stopped; resistance where rises have. The explanation offered is memory of previous transactions at those prices.
They are among the most subjective concepts in technical analysis, since the levels are drawn by the person looking at the chart.
Where it misleads people
Round numbers attract attention and become self-fulfilling in the short term. That is a fact about where orders cluster, not about value.
Related terms
Mentioned in
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