Support and Resistance: Zones, Not Exact Lines

Support is an area where price has previously stopped falling. Resistance is an area where price has previously stopped rising. They are useful reference points because many traders watch the same areas.

Think in zones

Price rarely reverses at one exact value. Drawing a band instead of a thin line reflects that reality and keeps you from being surprised by small overshoots.

How zones are found

• Look for areas where price turned several times.
• Prefer zones that are easy to see on higher timeframes.
• Note that a broken zone can flip roles, with old resistance becoming support, and the reverse.

Common mistakes

• Drawing too many lines until the chart is unreadable.
• Assuming a zone must hold. Zones fail, so plan where you would be wrong.
• Ignoring the wider trend.

Zones help you describe where price might react. They never guarantee that it will.

Educational content only, not investment advice.