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Support and resistance levels can give traders additional information about the strength of a price trend. Here, we clarify the terms "support" and "resistance," as well as how to locate, identify, and draw both lines. The terms support and resistance refer to two distinct levels on a price chart that seem to restrict the market's ability to move. The resistance level is where the price typically stops rising and sinks back down, whereas the support level is where the price typically stops falling and rebounds back up. The levels are a result of supply and demand: if there are more buyers than sellers, the price may increase; if there are more sellers than buyers, the price is more likely to decrease.