Unit 1 · Level 2 · Support & Resistance
Support: the floor
Theory's done. Now we learn to READ markets. First concept: support. A support level is a price where buyers have repeatedly stepped in and stopped a fall. Think of it as a floor the price keeps bouncing off.
Free to play. No ads, no token, no account needed to start.
What you get asked
What is a support level?
Support is crowd behavior, not a rule: enough buyers think 'that's cheap' at that price to absorb the selling.
BTC has bounced off $95,000 four times in two months. What do traders call $95,000?
Each visible bounce recruits more believers. Support is partly self-fulfilling, because everyone's watching the same chart.
Support forms where ___ have repeatedly outnumbered sellers.
Old lesson, new clothes: it's still just supply and demand, concentrated at a price.
Price slices straight through a support level and keeps falling. What just happened?
Supports are floors, not laws. When one breaks, the sellers won that battle, and the market often falls to the NEXT support below.
Price keeps reacting at one zone on this chart. Which statement reads it correctly?
Three separate drops into the same zone, three rejections upward. Each bounce is buyers defending their level. The floor is real until it isn't.
Where do many disciplined traders place stop-losses when buying near support?
If it breaks, the trade idea is wrong. This is levels + stops working together: buy near the floor, exit just below it if the floor gives way. Your Unit 2 knowledge just got a targeting system.
The rest of this unit
Floors, ceilings, flips, moving averages: where the battles happen.