At some point in your life, you bought petrol for 50 per liter.

Last month, you bought it for 200, and this month you're buying it at 150.

👉 So when you think about past or future prices, your mind naturally expects the price to move between 50 and 200.

📊 Here, 50 acts as support and 200 acts as resistance.

💡 Why are these important in trading?

Support is the price level where buying pressure is so strong that the price stops falling.

Resistance is the opposite—selling pressure becomes so strong that the price stops rising.

📈 How are they identified?

Usually, traders connect past lowest points (for support) and highest points (for resistance) using simple lines to identify these levels.

The simplest form of this is shown in the chart.

🧠 Psychological Insight

Support and resistance are psychological levels in trading.

There are many such psychological levels that influence market behavior.

Human psychology itself is fascinating…

👉 Have you ever wondered why we say “triple confirmation” (3 times) for strong assurance?

Why not 2 or 4?