GLADIOGLADIOTrading
Glossary

Support and resistance(Support and resistance)

Zones where price has turned in the past: support is the level where buyers dominate below, resistance where sellers dominate above. Once broken, the roles can switch.

Also written as: destek ve direnç · destek/direnç · destek · direnç

Support/resistance is a zone, not a single line; how many times it has been tested, the volume and the timeframe determine its importance. A broken resistance acting as support (role reversal) is one of the most commonly used entry logics.

Because everyone sees the same level, stops pile up just behind it; that is why price overshoots the level somewhat and then turns back (liquidity sweep). Placing your stop a "sensible" distance behind the level accounts for this behaviour.

Related terms

Where it appears in the guides

Guides whose text uses this term; most frequent first.