Chapters in Technical Analysis & Trading Tools
Chapter 1 of 10 · 5 min read
Trend, support and resistance
The skeleton of every chart: which way price is going and where it tends to stall.
A trend is a sequence of higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend). Sideways markets trade in a range. Identify the trend first; most indicators work only in the right regime.
Support and resistance
Support is a price area where buyers have stepped in before; resistance is where sellers have. When broken, old resistance often becomes support and vice versa. The more times a level is tested, the more it matters, until it finally breaks.
Breakouts and fakeouts
A close beyond a level on rising volume is more convincing than an intraday poke. Many breakouts fail, so define where you would be wrong before you act.
Key takeaways
- Trend first, indicators second.
- Levels are zones, not exact lines.
- Volume confirms breakouts; always define invalidation.
Put it into practice
Open the live page on Market Intelligence and see this concept on real data.
Keep learning
- Moving averages, golden cross and death cross · Technical Analysis & Trading Tools
- How to read a candlestick chart · Market Foundations
Education only, not investment advice. Updated 2026-10-09.