Support & Resistance Levels
Key price levels where buying/selling pressure concentrates
What is it?
Support levels are prices where buying interest has historically been strong enough to prevent further decline. Resistance levels are where selling pressure has capped advances. These levels are identified through pivot points, previous highs/lows, and areas of high-volume trading. Breaks above resistance or below support signal major moves.
Why it matters
S/R levels (weight 1.2) are PRIMARY in AIShare. They provide specific price targets for entries, exits, and stop losses. Buying near support with tight stops is a core swing trading strategy. The scoring increases when a level has been tested multiple times (stronger level).
Key parameters
| Parameter | Default | Description |
|---|---|---|
| Lookback Period | 60 bars | How far back to search for pivot highs/lows |
| Proximity | 2% | How close price must be to a level to trigger signal |
| Max Levels | 8 | Maximum S/R levels tracked near current price |
How to use
- 1Identify support: look for areas where price bounced multiple times
- 2Identify resistance: look for areas where price was rejected multiple times
- 3Buy near support with stop loss just below — tight risk/reward
- 4Take profits near resistance or wait for clean breakout with volume
- 5More touches at a level = stronger level (up to 8 levels tracked)
- 6Breakout above resistance → old resistance becomes new support
Signals (5)
Price near support (within 2%)
Potential bounce zone — look for bullish confirmation
Price near resistance (within 2%)
Potential rejection zone — consider taking profits
Break above resistance with volume
Bullish breakout — new uptrend leg
Break below support with volume
Bearish breakdown — avoid buying
Price in no-man's-land (between S and R)
Wait for approach to key level
Swing trading tips
- Best swing entries: price at support + bullish candle + RSI oversold
- Set stop loss 1-2% below support (not exactly at support — allow for wicks)
- Target the next resistance level for profit-taking
- Failed breakouts (price breaks above resistance then falls back) are sell signals
Common mistakes to avoid
- Drawing too many levels — focus on the most obvious, clean levels
- Treating S/R as exact prices instead of zones
- Not using volume to confirm breakouts — low-volume breaks often fail
Best timeframes
Pairs well with
See S/R on real stocks
Want to see S/R plotted on your own watchlist of NSE & BSE stocks? Sign in and open the full indicator workbench — AIShare uses live daily data from your watchlist (no fabricated examples, no copyrighted screenshots).
Video tutorials (3)
Support and Resistance Trading Strategy
Rayner Teo
How to Draw Support and Resistance Like a Pro
Trading Rush
Support and Resistance Zones — Advanced Guide
The Trading Channel
Third-party tutorials — linked for educational reference. AIShare is not affiliated with these creators.
Quick quiz — test your S/R knowledge
5 questions. Pass with 3 out of 5 for a completion badge.
1A support level is…
2More tests of a clean level typically make it…
3After a clean breakout, old resistance often becomes…
4A safer stop-loss is usually placed…
5Why does volume matter on a breakout?
Educational self-assessment only — not a regulated qualification.
Unfamiliar with a term?
Terms like golden cross, divergence, squeeze and ATR are linked inline to their definitions. You can also browse the full Trading Glossary.
For educational purposes only — not investment advice. AIShare is not a SEBI-registered investment advisor.