Support and Resistance Guide

Think in zones

Support describes a price area where declines have previously met buying interest. Resistance describes an area where advances have previously met selling interest. These are observations about past behaviour, not barriers that prices must respect.

Read the surrounding chart

Identify the period being examined and the earlier highs or lows behind a proposed zone. A level derived from a daily chart need not describe short-term behaviour on a different interval.

A hypothetical example

If a price previously paused near 100, an analyst might study the area around 100 rather than assume an exact boundary. A later move through that area can continue or reverse. The earlier pause alone cannot determine which outcome will occur.

Using displayed levels

Compare TejTrade AI's displayed levels with the chart and data date. Different methods can produce different levels. Do not infer how a level was calculated unless the method is documented, and do not treat it as an assured entry or exit price.

Further reading

Fidelity: technical analysis learning resources

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