Question 1

What is the difference between support and resistance?

Accepted Answer

Support is a price area below the current price where falling price has tended to slow or stop before, like a floor. Resistance is an area above the current price where rising price has tended to slow or stop before, like a ceiling. Both are zones of past reaction, not guarantees.

Question 2

Are support and resistance exact lines?

Accepted Answer

No. They are zones, not precise lines. Price often reacts a little above or below a level rather than at the exact price, so it is more honest to think of a band a few ticks wide than a single perfect line.

Question 3

What does trend mean on a chart?

Accepted Answer

A trend is the general direction price has been moving over a stretch of time. An uptrend moves higher overall, a downtrend moves lower overall, and a sideways or ranging market has no clear direction. A trend describes the past and present, not a promise about the future.

Question 4

Can price break through support or resistance?

Accepted Answer

Yes. These are areas of interest, not walls. Price can move straight through a level, and a level that held many times can fail. That is why they are best treated as places to watch for a reaction, not as certainties.