Support & Resistance: Collective Memory on the Chart
Support and resistance zones are the scars left by intense battles.
Treat them as areas—not perfect lines.
How to Draw Them
- Zoom out to the timeframe that matches your holding period.
- Mark zones where price stalled, reversed, or consolidated with obvious volume.
- Refine the zone on a lower timeframe if you need more precision for entries.
Validation Checklist
- Multiple touches with meaningful reactions?
- Volume spikes or orderflow events present at the zone?
- Does the zone align with imbalance edges, VWAP bands, or high-volume nodes?
Managing Trades Around Zones
- Plan response before price arrives. Will you fade, break, or wait?
- Look for confluence. Candles, momentum shifts, or orderflow cues can confirm intent.
- Accept imperfection. Zones often get pierced before holding; plan invalidation accordingly.
Common Errors
- Drawing a new line for every wiggle → chart paralysis.
- Treating zones as static forever—update them as structure evolves.
- Ignoring how zones behave when broken (support turning into resistance and vice versa).
Support and resistance anchor your chart narrative.
Combine them with swings, volume, and timeframes to build robust trade plans.