How to draw support and resistance?

Drawing **support and resistance** levels is a key aspect of technical analysis. These levels represent areas where the price tends to reverse or stall, providing key insights into market behavior. Here's how to draw them in brief:

### 1. **Support**
- **Definition**: A price level where a downtrend is expected to pause or reverse as demand increases. It's the floor of the price action.
- **How to Draw**:
- Look for areas where the price has bounced higher multiple times in the past. These are points where buyers have stepped in.
- Draw a horizontal line at the lowest price points in these areas.
- Strong support is confirmed when the price touches the same level multiple times without breaking it.

### 2. **Resistance**
- **Definition**: A price level where an uptrend is expected to pause or reverse as selling pressure increases. It's the ceiling of the price action.
- **How to Draw**:
- Identify areas where the price has consistently faced downward pressure or reversed. This is where sellers have entered the market.
- Draw a horizontal line at the highest price points in these areas.
- Strong resistance is confirmed when the price fails to break above it multiple times.

### 3. **Key Points to Remember**
- **Multiple Touches**: The more times the price touches a level without breaking through, the stronger the support or resistance.
- **Broken Levels**: Once a support level is broken, it often becomes resistance (and vice versa).
- **Use Trendlines**: In addition to horizontal levels, you can also draw diagonal trendlines to connect higher lows (support) or lower highs (resistance) in trending markets.

These levels help traders anticipate potential price reversals or continuations, making them essential for developing trading strategies.