Support and resistance

Define a zone

Support is a region where past declines paused; resistance is a region where past rises paused. Specify the lookback and tolerance used to draw a region. A rolling high or low is only a descriptive extreme, not a validated order-flow level. Repeated tests may matter to a hypothesis, but their outcome must be measured rather than assumed.

Breakouts and false breaks

A price can trade beyond a previous extreme and return. Decide in advance whether your rule requires a completed close, multiple bars or a retest. Widening a stop after a failed idea changes its loss budget. An observed breakout does not remove spread, gap or execution risks.

Separate observation from action

Record the level, timeframe, timestamp, invalidation condition and data source in a journal. Compare outcomes with a predeclared baseline. AUREXIS Market Intelligence reports rolling extremes but does not recommend a trade. Use virtual practice to learn the interface rather than to infer real-world returns.

Practice exercise

Locate the displayed 20-bar range in Analysis. Write a hypothetical invalidation rule and the maximum virtual loss before opening a DEMO trade.

Open trading terminal (requires a customer account). Compare illustrative indicators.