The levels every setup is built on, and how to tell a real breakout from a fakeout.
What is a support level? A price where a stock tends to stop falling because buyers step in: people who were waiting for that entry, people who missed it last time, and holders adding more. Read the guide
What is a resistance level? A price where a rally tends to stall because sellers are waiting there: holders hoping to get out even, regretful sellers, and short sellers adding. Read the guide
What often happens to support once it breaks? It often flips into resistance. Buyers trapped at that level sell "just to get out even" when price comes back to it. Read the guide
And when resistance breaks? It often flips into support. Sellers who left early buy back, and new buyers wait for a pullback to the old level. Read the guide
Does one candle closing past a level confirm the breakout? No. A single candle can be a fakeout. Wait for confirmation, such as another close beyond the level or strong volume. Read the guide
What makes a breakout "real"? Volume expansion, a strong candle close, the right context (trend, market and sector) and, ideally, a retest of the level that holds. Read the guide
What is the "scene of the crime" retest? After a breakout, price comes back to test the level it broke. That retest is often the highest-probability entry. Read the guide
What is confluence? Several signals lining up at the same price, like a 200 EMA, horizontal support and a gap fill. Strong reactions often happen there. Read the guide
Why do support and resistance work at all? People buy at lows and sell at highs, and trading algorithms do the same, which reinforces those prices. Read the guide