Trader Maxey|Aug 20, 2026 11:21
Why is the support and resistance you draw most likely wrong? #PriceAction
First off, horizontal support and resistance (S/R) are usually not just a single line but rather a *zone*. Once you understand this concept from this perspective, it becomes much easier to grasp the logic behind S/R areas.
S/R can be used to analyze the market, but deciding which direction to trade still depends on the market structure and momentum.
Most people make mistakes here, and the biggest one is **entering too early**. There are two common errors:
1️⃣ FOMO chasing trades (long or short).
2️⃣ Not waiting for confirmation and directly trading reversals.
The first mistake usually ends in disaster—repeatedly. The second mistake might just waste your time.
The real logic behind *price action* is this: At support and resistance levels, momentum is influenced by opposing forces. These are **decision zones**, not **reversal zones**.
When the price reaches a key level, only focus on three things (ranked by probability):
1️⃣ Reversal confirmation → Enter a trade in the opposite direction.
2️⃣ No confirmation → Sit back and wait for the S/R zone to show a clear direction.
3️⃣ Breakout confirmation → Break through S/R → Hold above → Retest and confirm → Go long/short.
True price action isn’t about predicting the market. It’s about:
1️⃣ Identifying S/R zones →
2️⃣ Waiting for the market structure to become clear →
3️⃣ Confirming the structure →
4️⃣ Following the trend →
5️⃣ Finding the next S/R zone →
6️⃣ Repeating the process.
#SupportResistance #PriceAction #TradingSystem #TradingPsychology #Trading
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