Support and resistance are among the oldest ideas in technical analysis. A support level is a price area where declines have previously slowed or reversed; a resistance level is an area where advances have previously slowed or reversed.
How levels form
- Previous highs and lows: prices where the market turned before are watched by many participants.
- Round numbers: levels such as 100 or 50,000 often attract attention simply because they are easy to remember.
- Moving averages and bands: some participants treat widely used averages as dynamic support or resistance.
Zones, not exact prices
Different participants watch slightly different prices, so a level behaves more like an area than a single number. Treating a level as an exact price leads to over-precise expectations.
Why levels break
A level only describes where the market reacted in the past. News, changes in liquidity or a shift in the broader trend can push price straight through it. A level that has been tested many times may also become weaker rather than stronger, as the orders resting there are used up.
How our apps use levels
Each setup in Novira Crypto shows a reference zone, a target and an invalidation level. These levels describe the analysis and the point at which it is no longer valid. They are not instructions to buy or sell.
This article is for educational purposes only and does not constitute investment advice.