Support and Resistance Levels
Chapters in this video
- 0:00 The floor below: support at prior lows
- 1:36 The ceiling above: resistance at prior highs
- 3:00 Side-by-side lock: location and memory aid
- 3:53 Break down through the floor: broken support becomes resistance
- 5:31 Break up through the ceiling: broken resistance becomes support
- 6:25 Zones, not razor-thin lines: real-world nuance
- 6:58 Rapid-fire exam recap
What this video covers
- Why support sits below the current market and acts as a floor, halting a decline with concentrated buying interest
- Why resistance rises above the current market and acts as a ceiling, halting an advance with concentrated selling interest
- Where support and resistance most commonly form: prior lows for support, prior highs for resistance
- How role reversal works when a level is decisively broken, and why broken support becomes resistance while broken resistance becomes support
- Why the National Futures Association (NFA) exam treats support and resistance as zones rather than exact prices, allowing for slight overshoots before reaction
- How to dodge the two major exam traps: flipped location definitions and failure to identify role reversal after a decisive break
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 3 course also includes adaptive practice questions and spaced-repetition flashcards, free through the end of 2026.