Support and Resistance Zones
Mark zones instead of thin lines, and understand why broken levels can change role.
Zones, not lines
Orders cluster around prices rather than at an exact tick, so a level is better drawn as a band covering the wicks and bodies of the reactions.
The more clearly price reacted at a zone, and the more recently, the more attention it deserves. Old, weak touches deserve less.
Role reversal
After a decisive break, a former ceiling is often retested from above. Traders who missed the breakout and traders who were trapped on the wrong side may both act there.
This is a tendency, not a rule. Plan what you will do if the retest fails and price falls back inside the old range.
Key takeaways
- Draw zones that cover the reaction.
- Recent, clear reactions matter most.
- Broken resistance can act as support — plan for failure too.
Charts are illustrative examples, not real market data. This content is for educational purposes only and is not financial advice.