Let’s make it simple
Think of a playground chalk line that children keep turning around near. Their footprints will not all land on the exact same millimetre. Price reactions also tend to occupy an area rather than one magical number.
Understand the idea
Support is an area where price previously stopped falling or bounced. Resistance is an area where it previously stopped rising or fell back. These are descriptions of past reactions, not unbreakable floors and ceilings.
Mark zones using visible reactions and the same price scale. Include uncertainty. A support zone around 10 might reasonably include several nearby prices, depending on the chart; do not invent a universal width.
More touches do not guarantee a stronger level. Repeated tests can be followed by another bounce or a break. A candle near a zone deserves context, but combining two observations does not create a proven success rate.
Read exact candle values
| Candle | Open | High | Low | Close |
|---|---|---|---|---|
| A | 12 | 13 | 10 | 11 |
| B | 11 | 14 | 10.2 | 13 |
| C | 13 | 14 | 9.9 | 11 |
| D | 11 | 13 | 10 | 12 |
A small worked example
Prices bounce near 10.0, 10.2 and 9.9 on separate visits. Draw a narrow band around those reactions. A later close at 9.5 would be below that band, not proof that price can never return above it.
Your turn
On a simple chart, mark reactions near 10 as a band from 9.8 to 10.3. Explain why you used a band rather than a perfectly thin line.
Compare your exercise with a model response
A band allows for nearby reaction prices. Its width is an exercise choice, not a universal setting.
Pause & think
Check your understanding
Write an answer, then compare it with the explanation. This is self-study, not an automatically graded test.
Compare all three answers to unlock the review button.
Fictional examples. Education only; no pattern guarantees a result. Course information