If you've ever looked at a futures chart, a stock chart or plotted the price movements of a forex pair, you've seen support and resistance in action. It acts on every market, in every time frame and every trading instrument reacts to it. Every chart pattern that can be identified has a basis in simple support and resistance.

How can any technical trader even think of trading anything at all without having a complete understanding of how it works or at the very least an eye for identifying it's unique signature in the charts.

What is Support? This is simply a floor of prices, whether ascending, descending or level. It's an area where prices tend to return to for varying periods of time. What is Resistance? It's a ceiling of prices, whether ascending, descending or level, and again, prices tend to return to common areas over varying periods of time. The more a price returns to to a specific area, the stronger the support or resistance and the more powerful the bounce off of it.

Once resistance or support has been broken, a price will likely head for the next level of resistance or support before stalling again.

Simplistic explanation? Of course! But now we come to the nuances :)

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