How we map support and resistance

This page outlines the four-step process taught in our Level Mapping Workshop. It is a reference for prospective participants and graduates who want to revisit the sequence between sessions.

  1. Mark swing points

    Identify the most recent series of higher lows in an uptrend or lower highs in a downtrend. Use closing prices for equity charts; wick extremes for forex if that is your broker convention— but stay consistent within one map.

  2. Cluster reactions

    When two or more prior touches fall within a narrow band, draw a zone rather than a single line. The zone width should reflect the average candle body size on your chosen timeframe.

  3. Remove weak levels

    Delete any level with fewer than two confirmed historical reactions. A single bounce is an observation, not a zone. This step reduces chart noise significantly.

  4. Write invalidation rules

    Document what price action would cause you to remove or redraw each zone. Typically a daily close beyond the zone boundary on increased volume, or a structural break on the four-hour chart.

Example chart showing swing high and low markers

Step 1 example: swing points on a daily FTSE chart

Three consecutive higher lows marked with short horizontal ticks before any zone is drawn. Notice the third low aligns with a prior reaction from six weeks earlier.

Chart with shaded support zone band

Step 2 example: zone rather than line

The shaded band covers three touches between 7,820 and 7,845. A single line at 7,832 would miss the wick reactions at the zone edges.

Chart with removed unnecessary levels crossed out

Step 3 example: levels removed

Two levels that only had one prior touch are crossed out. The remaining three zones are sufficient for weekly decision-making on this instrument.

Notebook page with written invalidation rules

Step 4 example: invalidation notes

Written rule: "Remove lower support zone if daily close below 1.2640 with body, not wick alone." Keeps the map accountable to price action rather than hope.

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