Unit 1 · Level 2 · Support & Resistance
Resistance: the ceiling
A resistance level is a price where sellers repeatedly cap the rally: a ceiling. Sellers think 'that's expensive' there, or trapped buyers from before finally 'get out even'. Same psychology as support, upside down.
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What this lesson covers
The flip: yesterday's ceiling, tomorrow's floor
When price finally BREAKS above resistance, something lovely happens: the old ceiling often becomes new support. The sellers gave up; buyers now defend the level they conquered. Traders call it an 'S/R flip'.
What you get asked
Match the level to its behavior
Four words that describe 90% of chart commentary you'll ever hear.
ETH has failed to climb above $4,800 three times. What's happening at $4,800?
Three rejections make a level everyone can see. The more visible it is, the more real it becomes.
After a real breakout, old resistance often becomes new ___.
The S/R flip is one of the most-watched patterns in all of trading. You'll spot it everywhere now.
Same skill, other direction. What is this chart showing?
Three pushes into the same high zone, three rejections down. Sellers are defending that ceiling, and the more times it holds, the more meaningful an eventual real break becomes.
Price breaks above resistance on huge volume, then gently pulls back to that same level and holds. Many traders see this as…
Break → retest → hold. Volume confirming, structure flipping. You just read a setup that took most traders years to learn to see. (Still needs risk management. Next unit!)
The rest of this unit
Floors, ceilings, flips, moving averages: where the battles happen.