Support and resistance
Areas on a chart where demand (support) or supply (resistance) has historically stopped price. A level becomes stronger after repeated tests.
Definition
Support and resistance are areas on a chart where demand (support) or supply (resistance) has historically stopped price. It is often better to think in zones than in a single line — the market rarely bounces to the tick off “your” mark.
Example
On the H4 chart there are repeated reactions in the 1.0820–1.0840 zone. You plan a limit inside the zone with a stop below it and a target at the next structure — or you wait for a retest after a breakout instead of chasing mid-range.
Anti-example / common mistake
Spaghetti: dozens of lines from every timeframe with no hierarchy. Or treating a level touched once as eternal support/resistance without updating the structure.
How to use it (hygiene)
First a bias from the higher timeframe (D1, for example), then a zone on the entry timeframe. On the session-based GPW account for gaps after the close; on CFDs and forex account for the spread and the session (thin Asia is not the London–New York overlap). Invalidation of a setup is a move out of the zone, not “slightly below the line”. Record in your journal whether the reaction happened inside the zone or whether you chased mid-range.