Field Guide to Trading Terms

Support vs Resistance


Look-alike pair

Full entries: .

Support and resistance are both price levels where a market tends to pause or reverse, but the single difference that matters is which side of the current price they sit on: support is below, resistance is above. That positional difference is what makes one a potential floor and the other a potential ceiling.

Side by side

SupportResistance
Position relative to priceBelow the current market priceAbove the current market price
Typical roleActs as a floor where buying interest may emergeActs as a ceiling where selling interest may emerge
What a break suggestsA decisive break below can signal further weaknessA decisive break above can signal further strength
Role reversalOnce broken, support can later act as resistanceOnce broken, resistance can later act as support
Field markDrawn as a horizontal or rising line beneath the price barsDrawn as a horizontal or falling line above the price bars
How levels are setFrom prior lows, round numbers, or moving averages; exact rules vary by trader and marketFrom prior highs, round numbers, or moving averages; exact rules vary by trader and market

Which word to use

Use support when you mean a level below the market that may hold prices up, and resistance when you mean a level above the market that may hold prices down.