Support and Resistance Guide
Learn how key levels form and why they matter when analyzing scanner alerts.
Areas of prior price response
Support and resistance are zones where price has previously reacted or trading has clustered. They are not guaranteed barriers. Exact single-price lines can hide the normal variation around a level.
A practical zone
If several reactions occur between 98 and 100, treating that area as a zone may be more useful than assuming 100 is exact support. A move below 98 may invalidate one setup while remaining insignificant on a much higher interval.
Planning around levels
State how the zone was identified, the interval and the confirmation rule. Repeated tests do not guarantee that a level becomes stronger. Combine the level with a loss budget and avoid assuming a bounce just because a familiar price is reached.
Treat a level as a testable zone
Hypothetical worked example. Suppose hypothetical reactions occur at 99.5, 100.2 and 100.6. Calling this a zone near 100 describes the observations more honestly than claiming every order will fill at exactly 100. A later trade through the zone does not guarantee a reversal back into it.
Does the scanner draw levels?
No. Neither RSI nor OB identifies executable support and resistance orders. Record how you selected a level before the next move to avoid redefining it after the result.
Verify the assumptions
Check the input window, fees and data availability before applying this example. For the exact software behavior and coverage limits, read the scanner methodology. Examples explain arithmetic and interpretation; they are not historical performance claims.