Chart Reading & Price Action·Beginner· 4 min

Support & Resistance

The two most important lines on any chart — and how to draw them well.

What they are

Support = a price level where buyers have historically stepped in. Resistance = where sellers have historically taken control. The more times a level is tested, the more it matters — until it breaks.

Draw zones, not lines

Markets are messy. Draw levels as thin zones (a few points wide), not razor-thin lines. Price rarely hits the exact tick.

Broken support becomes resistance

When a support level breaks and price retests it from below, that old support often acts as new resistance. Same logic in reverse.

Watch it on the chart
Chart breakdown
SUPPORT · buyers step inRESISTANCE · sellers step in
NQ chart with 3 support zones and 2 resistance zones drawn as shaded rectangles.
Key takeaways
  • Support and resistance are zones, not lines.
  • More tests = more validated — until it breaks.
  • Old support flips to new resistance after a break.
  • The best trades come from clean, obvious levels.
Quick check

Price breaks below a support that held 4 times. It rallies back up to that level. What's the most likely bias?

Educational simulation only. Not financial advice. Prop firm rules vary between companies — always read the official rules of the specific firm before trading.