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Support and Resistance
Horizontal price levels where buying or selling pressure has historically reversed price.
What it is
Support is a price level where buyers consistently step in — price falls to it and bounces. Resistance is the opposite — price rises to it and gets rejected. These levels matter because traders REMEMBER them: a level that held twice will have a queue of orders sitting there the third time. The strongest support/resistance levels are: previous swing highs/lows, round numbers ($100K BTC), and historical volume peaks. When support breaks, it often flips to resistance (and vice versa) — this 'role reversal' is one of the cleanest setups in crypto.
Example
ETH bounces off $2,000 three times in two months. On the fourth touch, it slices through to $1,920. Three weeks later, when ETH rallies back to $2,000, that exact level rejects price — old support is now resistance. Short scalpers take it.
How Indikora uses Support and Resistance
Indikora's chart engine auto-detects swing-high/low pivots and renders them as support/resistance bands, with strength scored by touch count and volume.
Related terms
- Breakout — A decisive close beyond a key support, resistance, or consolidation pattern — usually with volume confirmation.
- Volume — The number of units (coins or contracts) traded in a given period — a direct measure of market participation.
- Trend (Uptrend, Downtrend, Sideways) — The dominant direction of price over a given timeframe: up, down, or sideways (consolidation).