Support and resistance

Trader's Glossary · Levels

Support and resistance

Definition. Price levels where the market has stopped declines (support) or rallies (resistance) in the past.

How it works

Market participants remember important levels and often react to them. In a profile and order flow approach, the concept is replaced by the question: where did the market accept price, where did it reject it, and what's happening at that level now?

Example

The previous day's high, the POC or the value area edges are levels where reactions are often seen.

What to watch out for

No level guarantees a reaction. Broken resistance can become support, but it doesn't have to.

See also

Acceptance and rejection, POC (Point of Control), Value area (VA, VAH, VAL).

More in Hetman Capital Club

You'll find the full explanation with graphics, examples and exercises in the 🖥️ Order flow atlas space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).

Educational content, not investment advice.