Line of resistance:

• They connect the important maxima (tops) of the market
  
• They arise, when buyers cannot, or do not wish to buy the given goods at higher prices. The pressure of sellers surpasses the pressure from buyers, and as a result growth stops and is replaced by falling prices. One important feature of the lines of resistance is the level of resistance - the lines parallel to the axis of time. It is a kind of "fence" on the price schedule. The probability of a break of the price at this "fence" is much less, than the probability of "weakness" from it. However, after the break of the price for a level of resistance (criteria of break differs for different schedules, but usually it is 20-30 items) this level becomes a level of support. The same principle applies to the break of a line of resistance - it becomes a line of support.

Lines of support:

• They connect the important minima (bottoms) of the market
  
• They arise, when sellers cannot, or do not wish to sell the given goods at lower prices. At a given level of the price the aspiration to buy can dictate the price sellers thus bringing pressure to the sellers to sell. Falling prices stop and the prices again start to go upwards. One of the important versions of lines of support is levels of support - the lines parallel to an axis of time. It is a kind of "fence" on the price schedule. The probability of a break of the price at this "fence" is much less, than the probability of not breaking it. However, after a break of the price for a level of support (criteria of break differs for different schedules, but usually it is 20-30 items) this level becomes a level of resistance. The same principle applies to about the break of a line of support - it becomes a line of resistance.