Reading market structure · Lesson 2 of 3
Levels and reactions
Treat support and resistance as zones to watch.
8 minute read
Zones, not perfect lines
Support and resistance describe areas where buying or selling pressure has previously mattered. They are not guaranteed turning points, and levels can break as liquidity and conditions change.
A useful observation explains why a level matters, which timeframe it is on, and what would invalidate it, so you are describing a hypothesis rather than assuming price must turn there.
Key takeaway
Use these concepts to understand the market, not to assume a particular outcome. Always define uncertainty and risk before making a decision.