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Module B · Technical Analysis·Lesson 1

Support & Resistance

Identify key price levels where markets turn

4 sections · 3 quiz questions · ~5 min read

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Keep support & resistance inside the live track.

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Closest track: Technical Analysis + Price ActionFirst lesson: The top-down framework
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What Is Support?

Support is a price level where buying pressure historically prevents price from falling further. Think of it as a floor. When price approaches support, buyers step in, creating demand that pushes price back up.
ResistanceSupportPrice Bouncing Between S/R

What Is Resistance?

Resistance is a ceiling where selling pressure stops price from rising. When price reaches resistance, sellers enter the market. The more times a level is tested, the more significant it becomes.
Wick watches the green buyer team pull the price flag up from a floor while the coral seller team strains, showing that support is where demand shows up.FloorBuyersSellers
Wick saysAt support, buyers step in and pull price back up off the floor.

Role Reversal

When support breaks, it often becomes resistance — and vice versa. This "role reversal" is one of the most powerful concepts in technical analysis. A broken floor becomes a ceiling that price struggles to break back above.
Wick points at a practice chart where price breaks above an old ceiling and then rests on it, showing how broken resistance can act as support.Role reversalPractice chartBreakoutNow a floor
Wick saysWhen a ceiling breaks, it can turn into a new floor for price.

Trading S/R Levels

Look for bounces at support (buy opportunities) and rejections at resistance (sell opportunities). Use candlestick patterns at these levels for confirmation. Never trade S/R in isolation — always seek confluence with other factors.
Wick shows a green card saying use a level plus a candle clue and a coral card saying do not trade a level alone, teaching to look for confluence.Do thisLevel plus a candleclueNot thisTrade a level all byitself
Wick saysA level is stronger when other clues agree, like a candle pattern right at it.
Quick check

Did it stick?

Try to answer each one before you peek at the explanation.

1

When a support level breaks, what does it often become?

2

The more times a support level is tested and holds, the weaker it becomes.

3

What should you look for when price reaches a support level?