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Trading term

Support and resistance

Price zones where buyers or sellers have repeatedly stepped in.

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Updated 2026-08-303 min readDefinition
Definition

Price zones where buyers or sellers have repeatedly stepped in.

Support is a zone where buying has previously been strong enough to stop a decline. Resistance is where selling has stopped an advance. Both are areas rather than exact lines.

They work partly because many traders watch the same levels, which makes them somewhat self fulfilling. When a level breaks, it often reverses role.

In practice

Old resistance that price closes decisively above frequently becomes support on the retest.

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