Support and resistance
Price levels where an asset tends to stop or reverse: support holds drops (buyers step in) and resistance caps rallies (sellers step in).
Support and resistance are two of the most fundamental concepts in technical analysis. They mark price levels where the market has historically reacted.
Support is a "floor": a region where a decline tends to lose strength because interested buyers step in. Resistance is the opposite "ceiling": a region where a rally tends to stall because sellers taking profit appear. These levels come from the market memory — prices where important reversals already happened tend to be respected again.
Traders use support and resistance to plan trades: buy near support, sell near resistance and watch for breakouts. When price breaks resistance with strength, it often turns into support (and vice versa) — the famous "pullback".
These levels are rarely an exact line; think of them as zones. The more times a level has been tested and respected, the more relevant it is. Combined with candlestick reading, support and resistance help decide where to enter, where to place the stop and where to take profit.