Discover our technical indicator strategies to optimize your trades
Support and resistance are price zones where the market tends to bounce or break. They are key psychological areas.
Used to identify optimal entry and exit points, and for stop placement.
Price bounces on validated support + Confirmation (volume or candlestick)
Price rejects validated resistance + Signs of weakness
S/R breakout with volume = Strong continuation signal
Price area where DEMAND is strong. Buyers step in massively, preventing further declines. It's a psychological "floor".
Price area where SUPPLY is strong. Sellers take profits, preventing further rise. It's a psychological "ceiling".
The market has MEMORY. Traders remember key prices (entries/exits/liquidations). When price returns there, they react the same way. A self-fulfilling prophecy!
Classic levels where price has bounced multiple times. The more touches, the stronger the level. Draw them clearly!
Moving averages (especially EMA 200) act as dynamic support/resistance. They move with price, adapting to trend.
Inclined trendlines - Follow trend direction
Look for obvious peaks and valleys on the chart. The more visible the pivot, the more important it is!
An S/R is VALID when price touches 2-3 times and bounces. After 4-5 touches, high breakout risk.
NEVER draw an exact line! Draw ZONES of 1-2% width. Use rectangles, not lines.
Round numbers (10,000, 20,000, 100) act as natural S/R. Humans love round numbers. They create self-fulfilling prophecies!
Entry : Entry: Wait for CONFIRMED bounce on Support + Reversal candle (hammer, engulfing)
Stop Loss : Below support zone (1-2% below)
Take Profit : Next resistance or R:R 1:2 minimum
Safest setup. Wait for confirmation; miss 20% of the move but win 70% of the time!
Entry : Entry: Resistance breakout + Volume 2x above average + Candle close above
Stop Loss : Below old resistance (now support)
Take Profit : Projected range distance upward
Powerful but beware of FAKE breakouts! Volume is key. Better: wait for RETEST.
Entry : Entry: After breakout, price retests old R (now S). Confirmed bounce = GO!
Stop Loss : Below retest (tight stop, excellent R:R)
Take Profit : Next resistance (often R:R 1:4+)
ULTIMATE setup! 80–90% of breakouts retest. Patience = perfect entry, tight stop, big profit!
After an upward breakout, old Resistance becomes Support. After breakdown, old Support becomes Resistance. THE BASICS! Price often returns to "test" this flip. That retest = best entry opportunity!
When MULTIPLE elements align = GOLDEN ZONE! Example: Historical S/R + EMA 200 + Fib 61.8% + Round number (50000$) = 90%+ success setup! Always seek confluence. 1 factor = 50%, 2 = 65%, 3+ = 80%+.
An S/R is STRONGER if: (1) 3+ touches, (2) higher timeframe, (3) older level, (4) bounce volume high, (5) large distance since last test.
Advanced version of classic S/R. Demand zone = where price exploded up (aggressive buyers). Supply = where price dropped fast (aggressive sellers). Represents real imbalances.
DAILY S/R are 10x more powerful than 1H S/R. Pro method: Identify S/R on Daily/4H for MAJOR zones. Then zoom 1H/15min for precise entry. NEVER trade against Daily S/R! It always wins over 1H S/R.
Only mark MAJOR levels where price has clearly reacted 3+ times. Too many lines = analysis paralysis. Keep chart clean. Quality over quantity!
Daily and Weekly S/R levels are 10x stronger than 15min levels. ALWAYS mark HTF levels first. They override everything else. Never trade against them!
Wait for confirmation! Price can spike through S/R before reversing. Use limit orders slightly inside the zone or wait for confirmation candle. Patience pays!
Price approaches Support, you buy in anticipation... and it breaks. Classic MISTAKE! ALWAYS wait for confirmed bounce (candle, volume). Better to miss 10% of the move than lose 100% of capital.
Price touches Support + RSI < 30 = GOLDEN BUY! Price touches Resistance + RSI > 70 = Perfect SELL. Technical + price confluence = 80%+ success. Add hammer candle = 90%+!
Hammer at support = bullish reversal. Shooting star at resistance = bearish reversal. Engulfing at S/R = strongest signal. Pattern + Level = High probability!
High volume at S/R = strong level. Low volume = weak, likely to break. Volume breakout through resistance = real move. No volume = fake breakout!
When historical S/R aligns with EMA 200 = SACRED ZONE! This is institutions' favorite setup. Add RSI oversold = 95% success setup. NEVER miss these confluences!
🎯 S/R are ZONES, not LASERS. The market isn’t precise to the cent. Draw 1–2% rectangles, not thin lines. Wicks matter. Valid breakout = CLOSE + VOLUME. Retest = Golden setup. Patience always pays! S/R are the foundation of everything: Fib, EMA... master them = master 80% of trading!
Buy zone - Strong demand
Sell zone - Strong supply
S becomes R, R becomes S
More alignment = Stronger zone
