What is the difference between support and resistance?

Support is the floor and resistance the ceiling. Ranges tend to appear in sideways trading markets where there is no clear indication of a trend. Pro Tip – Levels of support and resistance are not always perfect lines. Sometimes price will bounce off a particular area, rather than a perfect straight line.

What is support and resistance in trading?

As price action concepts go, support and resistance is one of the oldest in all of trading. The levels have been used for (literally) centuries now, way before trading was even conducted online, and are still to this day one of the most popular trading techniques, mainly because of how useful they are.

How do you trade support and resistance?

In the most basic way, this is how support and resistance are normally traded: Trade the “Bounce” Buy when the price falls towards support. Sell when the price rises towards resistance. Trade the “Break” Buy when the price breaks up through resistance. Sell when the price breaks down through support. A “bounce” and “break”? Say what?