Support, resistance and drawing tools
Price levels where the market keeps turning, and the tools for marking them on the chart.
6 minLesson 2 of 102 questions at the end
Key ideas
- 1Support is a price where falls have stopped before; resistance is where rises have stopped. They are zones more than exact lines.
- 2The more times a level held, the more traders watch it. When one finally breaks, it often swaps roles.
- 3Lance Trade’s chart has drawing tools: lines, rays, horizontal levels, channels, rectangles, Fibonacci retracements, measured ranges, and long and short position boxes.
- 4A long or short position box shows your entry, target and stop on the chart, with the reward against the risk.
Levels the market remembers
Support is a price where falls have stopped before; resistance is where rises have stopped. Traders remember them, place orders near them, and that is partly why they hold, until they don’t.
A range, then a breakout
Made-up candles. The opening range’s top and bottom are drawn as levels; see what the price does when it comes back to them.
Made-up 1h candles
O 90,864H 91,824L 90,851C 91,420
Using them
- Draw levels where the price turned more than once, not through every wick.
- Think of them as zones, a little above and below the line.
- When a level breaks, it often swaps roles: old resistance becomes support.
- Put stops beyond a level, not right on it, where many other stops wait.
Lance Trade’s drawing tools
The chart’s drawing tools (Alt or Option plus the key, as on TradingView) let you mark up the chart. Drawings are saved on your device, per market.
Lines
- Trend line (T), ray, extended line
- Horizontal line (H) and ray (J)
- Vertical line (V)
- Parallel channel
Shapes and measures
- Rectangle (Shift R)
- Fib retracement (F)
- Price and time range
- Text
Trade planning
- Long position
- Short position
- Entry, target and stop, with the reward against the risk
Common mistakes
- Drawing a line through every wick. Fewer, clearer levels are more useful.
- Placing your stop exactly on a well-known level, where many other stops sit.
- Treating a level as a wall. Levels break, and a stop loss is what protects you when they do.
Check yourself
Question 1 of 2
BTC has bounced off $95,000 three times. What is $95,000?
Keys 1 to 3 pick an answer, Enter checks it
Try it in Lance
Pick the horizontal line from the chart’s drawing tools (or press Alt+H) and click a price where the market has turned.
Draw a level