Floors and ceilings

The lesson in full

Price often stops at the same spots, again and again. Traders remember those levels, and lots of orders wait there. Spotting them is one of the first chart skills to learn.
Support is a floor: a level where buyers stepped in before and stopped a fall. Resistance is a ceiling: where sellers stopped a rise.
Round numbers attract orders, so they often act as floors and ceilings: 1.1000 on EUR/USD, 150 on USD/JPY, US$100 a barrel for oil.
Gold, 2013 to 2020 (monthly averages). For six years it kept stalling around US$1,350: resistance. In mid-2019 it broke through, and by August 2020 it averaged almost US$2,000.
When price closes clearly through a level, that's a breakout. A broken ceiling often becomes the new floor, and a broken floor the new ceiling.
Common mistake
Myth: support is one exact price. Reality: it's a zone. Price often pokes a little past a level before turning, so draw an area, not a razor-thin line.
Key takeaway
Support is a floor, resistance a ceiling. Think in zones, and expect a broken level to switch roles.

Support is... A price floor where buyers stepped in beforeAt support, buying has stopped a fall before, so traders watch it for another bounce.
Resistance is... A price ceiling where sellers showed up beforeAt resistance, selling has stopped a rise before.
After a breakout, old resistance often becomes... New supportBuyers who missed the breakout often wait at the old ceiling, so it can hold as a floor.
Price dips just below support, then quickly bounces back above it. This shows support is... A zone, not an exact lineLevels are areas where orders cluster, so price often pokes a little past them before turning.