GLOSSARY · MARKET STRUCTURE
What is Support & Resistance?
Support is a price where buying tends to stop declines; resistance is where selling tends to stop rallies.
Key levels include the prior day's high and low, the overnight high and low, round numbers, VWAP and volume-profile levels. The more times a level is respected, the more traders watch it.
When support breaks, it often becomes resistance (and vice versa).
EXAMPLE
ES bounces three times at 4,980 during the morning. A break below 4,980 later in the day often accelerates selling as stops trigger.
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