Lesson 5 — Classic Support and Resistance I

Support and resistance are foundational technical-analysis concepts. Support is an area where price previously found buying interest. Resistance is an area where price previously found selling pressure. These zones help traders identify where price may react again in the future.

The key word is “zone.” Beginners often draw support and resistance as exact lines and expect price to reverse perfectly. Professional analysis is more flexible. Markets can pierce levels, retest them, sweep liquidity around them, or break through them before showing direction.

This lesson teaches students how to identify clean levels without cluttering the chart. A useful level should have meaningful reaction, visibility, and context. Support and resistance are not complete strategies by themselves; they are decision areas where traders prepare scenarios.

1. Mark three support zones and three resistance zones on one chart.
2. Find one level where price reacted more than once.
3. Write why support/resistance should be zones, not exact lines.