Definition. Price levels where the market has stopped declines (support) or rallies (resistance) in the past.
How it works
Market participants remember important levels and often react to them. In a profile and order flow approach, the concept is replaced by the question: where did the market accept price, where did it reject it, and what's happening at that level now?
Example
The previous day's high, the POC or the value area edges are levels where reactions are often seen.
What to watch out for
No level guarantees a reaction. Broken resistance can become support, but it doesn't have to.
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You'll find the full explanation with graphics, examples and exercises in the 📖 Order flow encyclopedia space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).
