Horizontal Lines and Support/Resistance
Horizontal lines mark specific price levels that have historical significance. These levels — called support and resistance — are where price has previously reversed, consolidated, or experienced high trading activity. They are among the most important concepts in technical analysis.
What is Support?
Support is a price level where buying pressure historically exceeds selling pressure, causing price to bounce upward. Think of it as a "floor" that holds up the price. The more times a support level is tested and holds, the stronger it becomes.
What is Resistance?
Resistance is a price level where selling pressure historically exceeds buying pressure, causing price to reverse downward. Think of it as a "ceiling" that caps price rises. When resistance is broken, it often becomes new support — and vice versa.
How to Draw Key Levels
- 1Select the Horizontal Line tool from the left sidebar (or press Alt+H)
- 2Zoom out to see the broader price picture
- 3Look for price levels where the chart has reversed multiple times
- 4Click at that price level to place the horizontal line
- 5Focus on levels with 2+ touches — these are the most significant
- 6Use thicker lines or different colors for stronger levels
Support/Resistance Zones vs Exact Lines
In reality, support and resistance are better described as zones rather than exact price lines. Price rarely reverses at the exact same level — it might turn at $100.50 one time and $99.80 the next. Consider using the Rectangle tool to mark S/R zones instead of single lines for a more realistic representation.
Pro Tip
Focus on "obvious" levels that stand out when you zoom out. If you have to squint to see a level, it probably isn't significant enough. Mark 3-5 key levels on your chart, not 20.
Key Takeaways
- Support acts as a price floor; resistance acts as a price ceiling
- Key levels are where price has reversed multiple times historically
- When resistance breaks, it often becomes support and vice versa
- Use zones (rectangles) rather than exact lines for more accuracy
- Focus on 3-5 major levels rather than cluttering the chart