Support & Resistance Levels
The most fundamental concept in all of technical analysis — and the basis of nearly every Nezsig signal.
Support and resistance are the most important concepts in technical analysis. Every chart pattern, every indicator, and every trading strategy ultimately traces back to these two ideas.
Support
A support level is a price zone where buying pressure is strong enough to stop or reverse a downtrend — a "floor." When price approaches support, buyers step in aggressively and sellers back off.
- Strong support: Price bounced here multiple times
- Weak support: Only one prior bounce — may not hold
- Support becomes resistance: Once broken, old support becomes new resistance
- Round numbers ($50,000, $100) act as psychological support/resistance
Resistance
Resistance is the opposite — a "ceiling" where selling pressure stops or reverses an uptrend. When price reaches resistance, sellers increase and buyers step back.
How to Find Key Levels
- 1Start with the weekly chart — mark major swing highs and lows
- 2Move to daily — refine with more recent price history
- 3Look for levels touched 2+ times (stronger = more touches)
- 4Note the all-time high — always significant
- 5Mark consolidation zones where price spent extended time
Tip
Nezsig signals are almost always triggered near key S/R levels. When you receive a signal, zoom out and identify the key level it's playing off of — understanding this builds conviction.
Trading S/R Practically
- LONG near support — stop below the level
- SHORT near resistance — stop above the level
- Breakout trades — enter after price closes convincingly past the level on high volume
- Avoid entering on wicks — wait for candle body confirmation
Discussion3 comments
This is exactly what I needed. The 10-layer system makes sense — explains why the signal quality is so consistent.
The No-Trade Zone filters are genius. I've been burned by signals during news events so many times. Good to know there's a filter for that.
Session bonus makes a lot of sense. London/NY overlap is always the most liquid period. Low liquidity breakouts are notorious fakeouts.