What is support and resistance? The price levels traders watch
By SendPay Business · · 2 min read
Support is a price level where a falling market has tended to stop and bounce. Resistance is a level where a rising market has tended to stall. Traders in forex, crypto and shares mark them on charts to judge where prices might pause.
Why the levels form
Many buyers and sellers remember past highs and lows and place orders near them. Round numbers such as 1.3000 in GBP/USD often act the same way, because so many orders cluster there.
How traders use them
- Mark recent highs and lows where price turned more than once.
- Watch how price behaves as it gets close to a level.
- Treat a clear break through a level as a possible change in direction.
- Note that a broken resistance often becomes new support, and the other way round.
The limits
Levels are zones, not exact lines, and they fail often, especially around big news. Chart reading shows what has happened, not what will happen, so it is no guarantee of any result.
Where SendPay fits
SendPay platforms let customers hold GBP, EUR and USD and exchange between them at a fee the platform owner sets, powered by licensed partners. SendPay doesn't offer trading.
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Build my platform →Questions people ask
How do I work out Williams %R?
Our free Williams %R calculator turns high, low and close prices into %R, with overbought and oversold zones.
Williams %R calculator →How do I work out Bollinger Bands?
Our free Bollinger Bands calculator turns a list of closing prices into the upper, middle and lower bands for any period.
Bollinger Bands calculator →How do I work out pivot points?
Our free pivot point calculator turns a previous high, low and close into the pivot point and three support and resistance levels.
Pivot point calculator →What is a candlestick chart?
A chart showing each period's open, high, low and close.
Candlestick charts →What is technical vs fundamental analysis?
Two ways traders try to read where prices go next.
Technical vs fundamental →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.