Support, Resistance & Price Action
Price doesn't move randomly — it tends to react at certain levels, again and again. Learning to spot these levels is one of the most practical skills in reading any chart, stock or forex alike.
Support — a floor price tends to bounce off
Support is a price level where a falling price has repeatedly stopped falling and bounced back up, because enough buyers consistently step in at that level to outweigh sellers.
Resistance — a ceiling price tends to struggle past
Resistance is the opposite — a price level where a rising price has repeatedly struggled to break through, because enough sellers consistently step in to outweigh buyers.
Price repeatedly bounces off support and stalls at resistance — visible structure, not randomness.
Breakouts and retests
When price finally pushes through resistance (or support) with real conviction, that's called a breakout. Often, price will pull back afterward to "retest" that same level from the other side — old resistance frequently becomes new support, and vice versa.
What "price action" really means
Price action simply means reading a chart's actual movement — candlesticks, support, resistance, breakouts — without relying primarily on indicators (which we'll cover next lesson). Many experienced traders treat price action as the foundation, and indicators as supporting confirmation, not the other way around.
Quick Check
1. Support is a price level where:
2. After a breakout, price often does what before continuing?
Quick Recap
- Support is a floor price bounces off; resistance is a ceiling price struggles past.
- A breakout is price finally pushing through one of these levels, often followed by a retest.
- Price action means reading the chart's actual movement as the foundation, before adding indicators.
“World's Best Financial Education isn't a slogan here — it's the standard every lesson is written against.”
Akodi Victor — CEO & Founder, Global Market School Ltd.