Support and Resistance

I am in the 2nd Grade in School of Pipsology. I do not understand the concept of Support and Resistance, can someone please explain it to me?

Resistance is a price higher than the current price which, if reached, would give you a strong bullish signal. Support is a price lower than the current price which, if reached, would give you a strong bear signal. There are various methods of determining these levels. It can be as simple as a highest high and lowest low within a set period.

Traders can use these as triggers. For example, when current price reaches a highest high, some traders will go long betting that the trend will continue, and others will bet on a bounce-back and go short.

They way I define Support/Resistance is there has to be at least 3 touchs on the trend line otherwise it is yet to become a sup/res level.

Steve Nison defined it pretty well. Key candlesticks on swing highs and lows (Shooting Star/hammer, engulfing patterns, dojis) will virtually always end up becoming a support or resistance level sometime in the future. You need to approach support/resistance as a creative tool, instead of a purely technical one. Price action obeys support and resistance levels because WE want them to and, as a result, will trade in a predictable fashion around these levels. You can make up as many theories as you want as to why a support or resistance level exists, but the only thing you need to note is that support/resistance exists solely because people and institutions want them to exist.

Use support and resistance as further confirmation to enter a trade. You should filter trades in this manner:

If price at support, then think about going long (only if there is a confluence of other technical/candlestick factors)

If price at resistance, then think about going short (only if there is a confluence of other technical/candlestick factors)