Support & Resistance Discussion

Support & Resistance (S/R) are areas, or ranges, they are rarely exact price points.

The lower time frames will more often respect exact prices. 

For example M1, M5, M15, M30

The larger time frames will respect general areas, ranges of price, NOT exact prices. 

For example H1, H4, D1, W1, MN

The concept to understand is very simple really.

Support is the bottom, this area is where the Buyers out numbered the Sellers and pushed price UP, or Higher. They will Defend that price area.

Resistance is the top, this area is where the Sellers out numbered the Buyers and pushed price DOWN, or Lower. They will Defend that price area.

One main thing to monitor is the behavior of price related to where it closes.

Does the candles in your timeframe begin to close above or below S/R?

(see image)

A-Resistance Established

B-Support Established at a Swing Low

C-Candle Closes above Resistance (Point A)

D-Price still flows up and down, it pulls back; however, not as low. (Stays above Point B)

E-Price Breaks to New Highs.