Glossary
Signals & market structure

Support and resistance

Support is a price area where buyers have repeatedly stepped in; resistance is an area where sellers have repeatedly taken control. Both mark where pressure tends to shift.

Support and resistance are price areas where the balance between buyers and sellers has changed in the past, and may change again. Support is an area below the current price where buyers have repeatedly stepped in and stopped declines. Resistance is an area above the current price where sellers have repeatedly taken control and capped advances.

These are zones, not exact lines. Their usefulness comes from memory and behaviour: traders who missed a move often act when price returns to a familiar area, which is part of why these areas matter. When price pushes through a strong resistance area and holds, it can signal that the balance has genuinely shifted. When it fails at the same area again, it suggests sellers are still in charge.

For a disciplined investor, support and resistance are context rather than commands. Crypto Wealth reads how price behaves around these areas, whether buyers absorb pressure at support or stall at resistance, as part of judging whether a trend is healthy.

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