Course: Technical Analysis Basics·Lesson 2 of 2·8 min read·Last reviewed 8 May 2026
Support and resistance basics
Levels are zones where price reacted before — not magic lines from YouTube.
James Okonkwo
Ex-market maker · 11 yrs FX options · CMT
By the end of this lesson you'll be able to:
- Mark support and resistance from prior reactions
- Explain why levels become zones, not exact prices
- Avoid drawing too many lines on one chart
Levels are memory
Support is a zone where buying previously overwhelmed selling. Resistance is where selling previously overwhelmed buying. Price remembers these areas because participants anchor to prior decisions.
Common mistake
Drawing fifteen lines on one chart. If everything is support, nothing is — pick the levels that changed behavior twice or more.
Quiz — Test your understanding
1. Support is best described as:
2. Resistance often forms where:
3. Good levels usually: