Trend, support and resistance

Trend

Price never moves in a straight line: it goes up and down in a zigzag. If each low is higher than the previous one, the trend is bullish. If each high is lower, it’s bearish. If it moves sideways, it’s in a range.

Support and resistance

Support is a price where the price has stopped falling many times (lots of buyers are waiting there). Resistance is a price where it has stopped rising many times (lots of sellers).

• The more times a level holds, the more important it is.
• When resistance breaks with force, it often turns into support (and vice versa).
• Round numbers ($100,000, $4,000) often act as support and resistance.