Support and Resistance in Forex

Support and resistance are price areas where the market has previously shown meaningful reactions.

Support is associated with areas where declines have met buying interest or reduced selling pressure, while resistance is associated with areas where advances have met selling interest or reduced buying pressure.

Think in Zones

Real price reactions rarely respect one exact number forever.

Mark the densest cluster of meaningful bodies, closes, and repeated reactions rather than drawing a line through one extreme wick. This produces a more honest zone around the area the market has actually respected.

Hold, Test, or Break

When price reaches a zone, classify the evidence carefully.

A fast rejection and close back inside can show a hold.

A wick through the area followed by a close back inside can be a test rather than a confirmed break.

A body close through the zone with follow-through carries more structural weight.

Role Reversal

A broken support area can later act as resistance, and broken resistance can later act as support.

This role flip becomes more useful when the old level is revisited and visibly holds from the opposite side.

Do not assume the retest will work before it happens.

Key Takeaway

Support and resistance are evidence zones created by repeated price reactions, not guaranteed turning points.