LESSON 10 OF 16 · 3 MIN
Trend, support and resistance
IN SHORTA trend is the general direction of the price. Support is a level where buying has stopped falls before; resistance is where selling has capped rises.
An uptrend makes higher highs and higher lows. A downtrend makes lower highs and lower lows. Sideways means neither.
Support is a price where falls have stopped before, because buyers stepped in. Resistance is a price where rises have stalled, because sellers appeared.
KEY POINTWhen resistance breaks, it often becomes support, and the other way round. Levels are zones, not exact prices.
Analysts also talk about invalidation: the level that would prove an idea wrong. TradingFloor AI's chart analysis names these levels, so you know in advance what would change the picture.
Try it: Open a chart and look for levels where the price turned more than once.
Open a chartEducation only. TradingFloor AI does not give investment advice. Prices can fall as well as rise and you may get back less than you invest.