Support is a price area where buying has repeatedly overwhelmed selling; resistance is the mirror image. These aren't magic lines — they're memory. Traders who bought there before defend it; traders who missed the move bid it; traders trapped above it sell into it.
How levels behave
- The more times a level is tested QUICKLY, the weaker it gets — each test consumes the resting orders defending it.
- A clean break of support often becomes resistance on the retest (and vice versa). The trapped side exits at break-even.
- Round numbers and prior session highs/lows act as levels because everyone can see them.
Bounce or break?
Trading the bounce means entering AT the level with a tight invalidation just beyond it — small risk, needs the level to hold. Trading the break means entering as the level fails, expecting trapped traders to fuel the follow-through — better momentum, worse price. Both are valid; mixing them up (chasing a break, then hoping it bounces back) is how accounts die.
In the Sim Challenge, check where entry, TP and SL sit relative to obvious levels. A TP just beyond a strong resistance is a harder race than one with clean air above.