Technical Analysis
How to read a chart, in the order the pieces build on each other.
Last updated
Read them in orderSupport & resistance4
Prices the market remembers
Before any tool or pattern, a chart offers one thing: prices where something happened before, and keeps happening again. A level is not magic and it is not a prediction — it is a record of where enough orders sat to stop a move, and of the traders who remember being stopped there.
Support
Floor
A price that buyers have defended more than once.
- What it says
- Sellers reach it and stop. Each touch that holds makes it better known.
- Where it fails
- Every level breaks eventually. The third touch is weaker than the first.
Resistance
Ceiling
The mirror image — a price that sellers keep defending.
- What it says
- Rallies die in the same place. Someone is filling orders there.
- Where it fails
- A level with only one touch is not a level yet, it is a high.
The Flip
Role reversal
Broken resistance becomes support, and the reverse.
- What it says
- The traders who sold there are now wrong, and buy it back to get out flat.
- Where it fails
- It only flips if price actually closed through — not just wicked past.
Zones, Not Lines
Precision
A level is a band a few pips deep, never a single price.
- What it says
- Orders cluster around round numbers, not on them.
- Where it fails
- A stop placed at the exact line gets taken out by the noise inside the zone.