Support and Resistance

Support is a price level where buying has repeatedly emerged, halting declines — a floor. Resistance is a level where selling has repeatedly emerged, capping advances — a ceiling. They exist because market participants remember prices: buyers who missed a bounce wait to buy the retest; sellers trapped at a high sell into the return.

You identify these levels by looking for prices that have been tested multiple times — prior swing highs and lows, round numbers, or areas of heavy volume. The more times a level holds, the more traders watch it, which is partly self-fulfilling.

• Bounce: price approaches support and buyers defend it — a potential entry with a stop just below.
• Break: price pushes through resistance on rising volume — a breakout.
• Flip: broken resistance often becomes new support (and vice versa).

Support and resistance turn a chart into a map of where risk is defined. They give you objective places to enter, to set an invalidation, and to take profit — the raw material of a risk-reward plan. Levels don't hold forever, which is exactly why a pre-planned stop is non-negotiable.

Entry Point Trading's signals reference these structural levels so every call has a defined place it's wrong — and we grade the outcome in the open.