Support and resistance
Support is an area where demand has stopped declines; resistance is where supply has stopped rallies. They are the most used tool in technical analysis because they reflect the market’s memory.
How to draw them
- Look for areas where price turned at least twice.
- Draw zones (rectangles), not exact lines: price rarely turns on the exact pip.
- Prioritise levels visible on higher timeframes (1h, 4h, daily).
- Include the previous day high and low and the Asian session range.
Role reversal
When resistance breaks decisively, it often acts as support afterwards (and vice versa). Waiting for the retest of the broken level is one of the cleanest entries there is.
How to trade them
Bounce: enter near the level with the stop on the other side of the zone. Breakout: enter after a close beyond the level or on its retest, with the stop inside the zone.
Frequently asked questions
How many touches make a level valid?
Two touches confirm it; three or more make it more visible — and also more likely to break.