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Technical analysis
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An uptrend is a series of higher highs and higher lows. A downtrend is lower highs and lower lows. Anything else is a range, where price moves sideways between two levels.
The first question on any chart is which of the three you are looking at. Strategies that work in trends often fail in ranges, and the reverse.
Support is a price area where falling prices have repeatedly stopped and turned up, because buyers step in. Resistance is an area where rising prices have repeatedly stalled, because sellers appear.
Treat them as zones, not exact lines. The more times a level has held, and the more volume traded there, the more attention it gets. A broken resistance level often becomes new support, and a broken support becomes resistance.
A breakout is a move beyond support or resistance. Many do not hold, so traders look for confirmation:
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Support and resistance give natural places to put a stop-loss and a target. A stop just below support risks a defined amount; if the level breaks, the idea was wrong and you exit.
That is also how entries and targets are planned in the Position Planner. You can find stocks with unusual volume using the Screener and study their levels in Stock Analysis.
Levels are stronger when price has reacted there several times, when volume was high, and when they show up on longer time frames.
A broken support level often turns into resistance, because buyers who bought there are tempted to sell when price returns to their entry.
A false breakout is when price moves past a level and then falls back. Breakouts on low volume are more likely to fail.
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