What is a Support/Resistance Zone?

Understanding Support and Resistance Zones

A support/resistance zone (often shortened to zone) is a price region where buying or selling pressure repeatedly emerges. Zones are broader than single price levels, encompassing clusters of reactions.

Building Zones

Plot zones using swing highs/lows, volume nodes, and supply/demand areas. Higher-time-frame zones carry more weight and should frame lower-time-frame trades.

Dynamic Zones

Zones can shift when broken; former resistance often becomes support and vice versa. Update charts after major breakouts to avoid outdated bias.

Confluence and Triggers

• Combine zones with round numbers, moving averages, and session opens.
• Seek acceptance: multiple closes within/above a zone before acting.
• Use order‑flow cues (tick volume, books) to avoid fading strength blindly.

Dealing with False Breaks

FX often wicks beyond a zone to harvest liquidity before reverting. Leave buffers beyond obvious extremes and look for swift reclaims to confirm traps.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.