Support & Resistance
Support and resistance are price levels where buying or selling pressure has historically concentrated, causing price to pause, bounce, or reverse. Identifying these levels is fundamental to technical analysis and trading decision-making.
Analyze Support & Resistance with AI
Charted identifies support & resistance signals and patterns on any chart you upload.
Download ChartedHow Support & Resistance Works
Support forms at price levels where buying interest has historically been strong enough to halt declines. Resistance forms where selling pressure has stopped advances. These levels are identified by previous highs, lows, consolidation zones, and psychological round numbers.
Key Features
Trading Signals
- →Price bouncing at support - potential long entry
- →Price rejecting at resistance - potential short entry
- →Breakout above resistance with volume - bullish
- →Breakdown below support with volume - bearish
- →Role reversal confirms level significance
Best Used For
Limitations to Consider
- ⚠Levels are zones, not exact prices
- ⚠Can be subjective to identify
- ⚠Strong trends can slice through levels
- ⚠Past levels don't guarantee future reactions
Support & Resistance FAQs
Common questions about support & resistance
Look for price levels that have been tested multiple times - previous swing highs/lows, areas of consolidation, round numbers, and gaps. The more times a level has been tested and held, the more significant it is.
When a level breaks with conviction (ideally with volume), it often switches roles. Broken support becomes resistance, and broken resistance becomes support. This is called 'role reversal' or 'polarity.'
No - treat them as zones rather than exact prices. Markets are not precise, and price often overshoots or falls short of exact levels. A 1-2% zone around the level is more realistic.
Related Indicators
All Technical Indicators
Explore Chart Patterns
Disclaimer: Charted provides technical analysis for educational purposes only. This is not financial advice. All trading involves risk. Always consult a licensed financial professional before making investment decisions.
Master Support & Resistance with AI
Download Charted and get professional technical analysis instantly.
Download for iOS