Lesson 1.7

Basic Support and Resistance

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Support is a price area where buying pressure tends to appear, so declines are held back. Resistance is the opposite: an area where selling pressure tends to appear, so rallies are held back.

Support and resistance areas. Price can bounce, break through, or return inside the range.
BelajarGold diagram. Click the image to enlarge.

How to mark them cleanly

  • Use the H4/D1 timeframes for major levels.
  • Mark areas, not hair-thin lines — the market respects zones, not exact numbers.
  • Levels that are touched many times and followed by strong reactions deserve more attention.

Role reversal

When resistance is broken convincingly, that level often turns into support when price comes back to test it — and vice versa. This phenomenon is called role reversal.

Key points

  • S/R are decision areas, not magic walls.
  • Levels from higher timeframes are stronger than levels from lower timeframes.
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