Every chart you open is full of turning points. Price rises, pauses, falls back, and rises again. Support and resistance are simply the prices where those turns keep happening.
Support: where buyers have stepped in before
A support is a price area below the current price where the fall has stopped before. Many buyers were willing to buy there last time, so the market remembers it.
Think of it as a floor. It is not made of concrete. It is made of people's earlier decisions, and floors can break.
Resistance: where sellers have stepped in before
A resistance is the opposite: a price area above the current price where rallies have stalled before. Sellers took profits or shorted there, so it acts like a ceiling.
A level is a zone, not a single number
Price rarely turns at exactly the same rupee. A level is better thought of as a zone, a small band around a price. LevelPilot draws this band using the stock's recent volatility, so a jumpy stock gets a wider zone and a calm stock a narrower one.
A level tells you where the chart is likely to react. It does not tell you which way it will react.
Every level needs an invalidation point
This is the part most tips leave out. If support is a floor, you also need to know where the floor has clearly broken. That is the invalidation level: usually a candle closing beyond the far edge of the zone.
For example, with a made-up support zone of 100 to 104:
- Price dipping to 102 and bouncing: the support is still doing its job.
- A candle closing at 98, below the zone: the support reading no longer holds.
Knowing this point before you study a chart keeps your analysis honest. You are not guessing where the story ends.
Old support often becomes new resistance
When a support breaks convincingly, the same zone often acts as resistance later, because traders who bought there now want to get out at the same price. The reverse also happens: broken resistance can turn into support.
Try it yourself
Open the Nifty X-ray and find the gold LevelPilot line. Note whether it is support or resistance, how wide the zone is, and where the invalidation level sits. Then switch between the 15-minute and daily timeframes and see whether the levels agree.