Support and Resistance Lines (S+R lines) What Are S/R Lines? S+R lines are points at which the price finds a permanent or temporary barrier. What we are interested in are these temporary barriers. The S+R lines on all currency pairs have been around for decades. If you look back in your charts to the 1980s you will find that the same S+R lines that worked back then are still valid today. So what exactly is an S+R line, and why would the price magically stop at some seemingly arbitrary horizontal line? Simply put, S+R lines are areas traders expect the price to have trouble getting through. The line only works because a long time ago the price happened to bounce away from it strongly. Therefore, the next time it reached that same price level, traders regarded it as a break opportunity or a price reversal level, and then traded accordingly. In other words, they thought, “The price bounced away from this line the last time. It might bounce away from it again, so I should be careful....
