"Talking About Trading in Plain Language"—Support and Resistance, 90% of People Draw Them Wrong

📌Support and resistance are not drawn; they are "walked out" by the market. Many people learning trading, the first thing they do is draw lines on the chart, but honestly—90% of support and resistance lines are just wasted effort.
Today, I will explain support and resistance in the simplest way. After reading, you'll know: which lines are useful, and which ones can be directly deleted.
First, remember one thing (constantly remind yourself):
👉Support and resistance are "walked out" repeatedly by the market with real money, not something you casually "draw."
1. What is support? What is resistance?
You can think of the price moving up and down inside a building:
Support = the floor
When the price drops here, it’s easier to be "held up," and less likely to fall further.
Resistance = the ceiling
When the price rises here, it’s easier to be "pushed down," and less likely to go higher.
👉 A very important point:
Yesterday’s ceiling can become today’s floor. Once the price breaks through, roles switch. So, flexible judgment is necessary; don’t stick rigidly to one line.
2. What positions are truly "useful"? Focus on two points
Not every low point is support,
Not every high point is resistance.
The truly effective positions must meet both of these:
① Most market participants can "see" this level
This level is repeatedly touched, discussed, and traded around; it has become a "public memory point" in the market.
👉 Only when many are watching will it have strength.
② When the price reaches this level, real "battle" occurs
It’s not just a light touch that passes; rather, there are buyers and sellers, and a clear battle between bulls and bears, causing the price to turn, rebound, or fall back.
👉 Genuine orders are needed for the price to turn.
3. What are support and resistance used for? They are not fortune-telling tools.
The most common mistake among beginners:
👉 Using support and resistance to "predict" exactly how the price will move.
This is wrong.
The true functions of support and resistance are only two:
1️⃣ To see whether the market is more bullish or bearish now
If the price bounces above support 👉 the market is leaning more towards "wanting to go up"
If the price breaks below support 👉 the market begins to "lose confidence"
It’s a sentiment dividing line, not a crystal ball.
2️⃣ To help you find "cost-effective" trading positions
At levels repeatedly validated by the market:
Entry: low cost, clear stop-loss
Exit: clear target, avoid random exits
👉 The market’s real liquidity is around these support and resistance levels.
4. Practical trading: only identify these two types of lines, ignore all others
Remember: more lines don’t mean better; fewer lines mean more accuracy.
You only need to find two types:
✅ The first: horizontal support / resistance (most important)
The only condition:
👉 The same level has been clearly validated at least twice
Multiple touches or rebounds at this level indicate real order placement.
✅ The second: lines with very small slope
Must meet: slope is not too steep (not too vertical), validated at least three times or more
👉 Lines that are too steep vary greatly from person to person, and the market can’t have a "unified view."
5. Three-step method for drawing lines (don’t skip any step)
1️⃣ Look: find the nearest clear high and low points
2️⃣ Connect: see if they are on the same level or slowly inclined
3️⃣ Validate: when the price reaches here, is there a clear reaction (rebounce / fall back)?
6. Common questions beginners ask
❓ Will there be fake breakouts?
Yes. 👉 That’s why we don’t predict; we only respond. Place stops on the other side of key levels or wait for candle close confirmation before acting.
❓ Can moving averages or trendlines serve as support and resistance?
Be cautious. Trendlines with steep slopes have limited reference value.
Moving averages: if not validated multiple times by the price, they are just "trend descriptions," not key levels.
❓ Should I look at the wick or the body?
Don’t get caught up in that. 👉 Finding turning points is more important than pinpointing exact levels.
In summary: support and resistance are fundamentally 👉 market consensus + real capital battles.
They help you 👉 understand market sentiment 👉 find safer, more profitable positions.
⚠ True trading is not about drawing more lines, but about drawing the right ones.
This content is for personal experience sharing only and does not constitute any investment advice. The market carries risks; trading requires independent judgment.