Lesson 03

Draw areas, not promises.

Support and resistance are contextual zones marked from observed price behaviour. They can slow a move, shift or fail. They are not walls.

Hypothetical chart path crossing broad upper and lower shaded zones
Hypothetical, unitless zones. No entry, exit or target is shown.

What the labels mean

Support

An area below or near the current observation where downward movement has previously slowed or reversed.

Resistance

An area above or near the current observation where upward movement has previously slowed or reversed.

Why two readers can disagree

  • Different timeframes

    A weekly cluster can disappear inside a shorter intraday sample.

  • Different anchors

    One reader may use closing values; another may include intrainterval highs and lows.

  • Different widths

    A single line suggests false precision. A zone admits that observations rarely turn at one exact value.

A break is an observation, not a forecast.

Moving beyond a marked zone confirms only that the selected data crossed that zone. It does not establish what must happen next.