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What is Support and Resistance?

Updated October 21, 2026

Support is a price level where buyers tend to step in, and resistance is where sellers tend to show up.

Price often bounces off the same areas again and again. Those are support below and resistance above.

Traders use them for entries, stops and targets.

When a level breaks, it often flips roles. Old resistance can become new support.

Example

Gold keeps bouncing at 2,380, so traders treat it as support.

Questions people ask

How do I find these levels?

Look for spots where price turned around several times.

Do levels always hold?

No, they're zones, not walls.

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More questions people ask

What's the best indicator for support and resistance?

There's no single best one. Most traders just mark areas on the chart where price has turned around before using plain price action, and some add tools like moving averages or pivot points to double check those zones. Keep in mind no indicator guarantees price will react the same way next time, and trading always carries the risk of losing money.