Support and Resistance: The Floors and Ceilings of Price
Risk warning: Support and resistance can break. This is education, not financial advice.
Support is a floor. Resistance is a ceiling. Price often bounces at these levels — then breaks through.
How to find them
- Look for places where price bounced 2–3 times.
- A floor that held twice is support.
- A ceiling that held twice is resistance.
On EUR/USD, round numbers like 1.1000 often act as support or resistance because many traders watch them.
How to use them
- Buys near support, sells near resistance — with a stop loss just beyond the level. See Stop Loss: Your Automatic Brake Pedal.
- Do not place stops exactly on the line — give room for wicks. See Candlesticks: What Each Candle Tells You.
When price breaks a level, that level often flips: old resistance becomes new support.
Practise in busy hours London 8am–5pm WAT. See Trading Sessions in Plain Time: When Beginners Should Trade and demo guide How to Use a Demo Account.
Bottom line: Buy near support, sell near resistance with stop just beyond, or you risk buying a ceiling that soon breaks. Related guides: Starting Forex as a Beginner.