Support & Resistance
Support and resistance simply refer to areas where price tends to bounce or struggle to move past.
Resistance is an area where a lot of sellers enter the market and support is an area where a lot of buyers enter the market.
When price breaks through support, it often treats it as resistance going forward. Conversely, when price breaks through resistance, it often treats it as support going forward.
Price frequently moves within ranges and the top of that range is called resistance while the bottom of that range is called support.
Establishing price ranges is one of the most useful features of identifying support and resistance.
Support and resistance lines/areas are not themselves a reliable way to trade, but they represent significant price points where more liquidity (buyers and sellers) enter the market to drive price in some direction.