Reading charts · 4 min

Trend, support and resistance

Some price levels keep mattering: a floor where price tends to stop falling (support) and a ceiling where it tends to stop rising (resistance).

Trend

Uptrend: higher highs and higher lows. Downtrend: lower highs and lower lows. Sideways: moving within a range.

A price where falls have stopped and bounced several times before. Buyers often show up there.

A price where rallies have stalled before. If it breaks (a breakout), it often turns into support later.

These levels aren't guarantees, only probabilities. That's why a stop-loss matters.

This is for learning only, not advice on any stock or trade.