Support and Resistance
This is a very simple pattern. You draw a line on a chart and look where price touches the line and afterwards rises in case of support or falls in case of resistance.
The Support Line indicates where price will move towards and rises afterwards of touching.
The Resistance Line indicates where price will move towards and falls afterwards of touching.
First you need to establish at least two points of support or resistance for a support or resistance line to work. The next time price touches that line it is more probable that the behavior of the price will match that of the previous times it touched it.
When price touches the Support Line, it gives you a Buy Signal.
When price touches the Resistance Line, it gives you a Sell Signal.
You can reduce risk by getting 3 or more evidence touches of a line, before you use it to trade.