Core price-structure vocabulary.
| Concept | Explanation | |---|---| | Support | A zone where buying previously limited declines. | | Resistance | A zone where selling previously limited advances. | | Range | Price oscillates between support and resistance. | | Resistance breakout | Price moves decisively above resistance. | | Support breakdown | Price moves decisively below support. | | Role reversal | Former resistance becomes support, or former support becomes resistance. |
Support and resistance are usually zones rather than exact prices. A valid breakout should be evaluated by closing behavior, volume, follow-through, and retests.