Technical Analysis

Support and Resistance

Support is a price level where buying pressure is historically strong enough to halt a decline and potentially reverse it. Resistance is a price level where selling pressure is strong enough to halt an advance and potentially reverse it.

Why it matters for traders

Support and resistance levels are the foundation of most technical trading strategies. They define natural areas for stop loss placement, entry points, and profit targets — making them central to risk-reward calculations.

How Tradapt tracks this

Tag trades taken at support or resistance levels in your Tradapt Playbook. Track the win rate and average R of your support/resistance setups to evaluate whether this pattern has edge in your trading.

Track this free in Tradapt

Frequently asked questions

What makes a support or resistance level strong?

Levels become stronger when: multiple price reactions have occurred at the level, the level is on a higher timeframe, and the level coincides with round numbers, moving averages, or previous structure highs/lows.

Related terms

Deepen your knowledge