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THEVALUETRADER RESEARCH
INTERACTIVE GUIDE
REF: S/R LEVELS

Support & Resistance

How to find the next level that actually matters

Anyone can draw horizontal lines. The real skill is knowing which level price meets next — and which ones to ignore.

φ 00

Support & Resistance in 30 Seconds

Four ideas. Everything else on this page builds on them.

01
Support is the floor
An area below the current price where buyers previously became strong enough to stop or reverse a decline.
02
Resistance is the ceiling
An area above the current price where sellers previously became strong enough to stop or reverse an advance.
03
They are areas, not prices
Markets rarely turn at one exact number. Think of a zone around where price previously reacted.
04
Direction decides which is which
The same area can be Support or Resistance. What decides it is whether it sits above or below the price right now.

Your First Mental Model

Everything on a chart is read relative to one thing: where price is right now.

↑  LOOK UP FOR RESISTANCE
RESISTANCEAbove price — where advances previously stopped
CURRENT PRICEWhere the market is now
SUPPORTBelow price — where declines previously stopped
↓  LOOK DOWN FOR SUPPORT
The one thing beginners get backwards

A level is not permanently “Support” or “Resistance”. Those words describe its position relative to current price. Move price above it and the same area becomes Support. Move price below it and it becomes Resistance.

φ 01

The Master Rule

Support and Resistance come from past price action. That means the answer is always somewhere to the left on your chart.

This is the whole method in two lines.

To find the next Support
← ↓
  • Start at current price.
  • Look left into past price action.
  • Look below current price.
  • Find the nearest meaningful area where buyers previously reacted.
To find the next Resistance
← ↑
  • Start at current price.
  • Look left into past price action.
  • Look above current price.
  • Find the nearest meaningful area where sellers previously reacted.

One word in there carries most of the weight: meaningful. The rest of this guide is mostly about what that word means in practice.

φ 02

The Building Blocks: Swing Highs and Swing Lows

Before you can find a level, you need to see the turning points that create them.

A swing high is a local peak: price stopped rising and turned lower. It is a Resistance reference.

A swing low is a local bottom: price stopped falling and turned higher. It is a Support reference.

The filter that matters

Every chart contains dozens of tiny pivots. Almost none of them deserve a line. Focus on the pivots that produced a visible reaction — where price turned and then actually travelled somewhere.

φ 03

Think Zone, Not Perfect Line

Beginners often hunt for the one exact price where Support “is”.

Real charts do not cooperate. Several candles react around roughly the same area, each at a slightly different price.

Wicks or Bodies?

This is the usual follow-up question, and the honest answer is: look at the whole reaction area.

One caution: a zone should represent the actual cluster of reactions. If you widen it until everything fits inside, it stops telling you anything.

φ 04

Where Is the Next Support?

This is the question most beginners actually want answered. Here is the process, one step at a time.

Below current price, ask: where did price previously stop falling? Where did buyers step in? Where is a meaningful swing low, a breakout area, or an old Resistance that price has since climbed above?

The key distinction

Nearest does not mean the closest random candle low. It means the closest price area with visible structure — a turning point that mattered enough to move price.

φ 05

Where Is the Next Resistance?

Exactly the same process, mirrored. The logic is identical, so once you can do one you can do the other.

Above current price, ask: where did price previously stop rising? Where did sellers take control? Where is a clear swing high, a strong rejection, or an old Support that price has since fallen below?

Same filter

Again: skip the tiny pivots. A single small candle high two ticks above current price is noise, not the next Resistance.

φ 06

“Next” Is Not “Strongest”

These two words get confused constantly, and it causes real analytical mistakes.

Next
Describes sequence. The closest meaningful level price will encounter if it keeps moving in that direction.
Strongest
Describes importance. The level with the most convincing history behind it — which may be far away.

They are often different levels. Price has to travel through the next one before it can ever reach the strongest one.

That is why a chart usually has a whole stack of levels, not one.

Major ResistanceStrong, but further away
Next ResistanceThe one price meets first on the way up
CURRENT PRICEEverything is measured from here
Next SupportThe one price meets first on the way down
Major SupportStrong, but further away

When someone asks “where is the next Support?”, they are asking about the row directly below current price — not about the strongest level on the chart.

φ 07

Levels Can Change Roles

This is one of the most useful ideas in the whole topic, and it follows directly from the mental model in φ 00.

If Support means “below price” and Resistance means “above price”, then price moving through a level changes what that level is.

Both stories run side by side below — they are mirror images of each other.

Careful with certainty

Old Resistance can become Support. Old Support can become Resistance. Neither is automatic. A retest is an area worth watching, not a guaranteed bounce or rejection.

φ 08

Not Every Level Is Equal

Once you can spot levels, you need to rank them. Compare the two charts below.

What Makes a Level More Important

There is no scoring formula here, and you should be suspicious of anyone who gives you one. This is about prioritising, not calculating.

Advanced note — are more touches always better?

A common shortcut says: more touches means stronger Support. Treat that with care.

Repeated reactions do make an area more visible and more widely watched, which is genuinely relevant.

But each test also consumes some of the buying or selling interest sitting there. An area tested five times is not automatically more likely to hold than one tested twice — sometimes the opposite.

The number of touches is context, not a verdict. Read the structure around the level rather than counting lines.

φ 09

Structure and Timeframe

Two pieces of context that make levels much easier to find.

Let Market Structure Point You There

Context
In an uptrend
Look lower
Support fromPrevious higher lows
Support fromPrevious breakout zones
Resistance fromHighs above price, until broken
Context
In a downtrend
Look higher
Resistance fromPrevious lower highs
Resistance fromPrevious breakdown zones
Support fromLows below price, until broken

“Next” Depends on Your Timeframe

A level that is obvious on a daily chart may be far away. On a 1-hour chart there is often a closer local level first.

Neither answer is wrong. They answer different questions.

DAILY CHARTFewer, bigger levels — the next one may be far from price
1-HOUR CHARTMore levels — a closer local one usually comes first
RULE OF THUMBHigher-timeframe levels generally carry more weight
BEFORE YOU ANSWERAlways state which timeframe you mean

So “where is the next Support?” is an incomplete question until you say on which chart.

φ 10

Price Moving Through a Level Is Not Always a Break

A wick poking through a zone and price genuinely establishing itself beyond that zone are two very different events.

This is a way of reading price, not a mechanical trading rule. There is no fixed number of candles or percentage that makes a break “official”.

φ 11

Support vs. Resistance, Side by Side

The two concepts are structurally identical. Only the direction changes.

Below price
Support
Think: FLOOR
LocationBelow current price
What happened thereBuyers reacted, decline stopped
What to watch forPossible reaction on return
Common referencesSwing lows
 Previous Resistance
 Breakout zones
Above price
Resistance
Think: CEILING
LocationAbove current price
What happened thereSellers reacted, advance stopped
What to watch forPossible reaction on return
Common referencesSwing highs
 Previous Support
 Breakdown zones
True of both
Areas, not exact prices Built from past price action Defined relative to current price Not a guaranteed reversal
φ 12

How to Find the Next Level

A working sequence you can follow on your own chart, right now.

Next Support
1Mark current price.
2Scan left and below.
3Ignore random tiny pivots.
4Find the closest meaningful reaction area.
5Check what it is: swing low, breakout zone, or old Resistance.
6Draw a zone around the reaction cluster.
7Check whether a higher timeframe reinforces it.
8That is your next Support candidate.
Next Resistance
1Mark current price.
2Scan left and above.
3Ignore random tiny pivots.
4Find the closest meaningful reaction area.
5Check what it is: swing high, breakdown zone, or old Support.
6Draw a zone around the reaction cluster.
7Check whether a higher timeframe reinforces it.
8That is your next Resistance candidate.
φ 13

Practice: Find Both Levels

One chart, both questions, worked through from scratch.

Before you press Next, look at step 1 and decide for yourself: where is the next Support, and where is the next Resistance?

φ 14

Common Beginner Mistakes

Drawing lines through every tiny high and low.
Twenty lines means no lines. Focus on the pivots that produced a visible reaction.
Treating Support and Resistance as exact prices.
Think in zones built around the cluster of reactions.
Calling a level “Support” when it currently sits above price.
Relative to current price, Support is below and Resistance is above. Always.
Confusing the strongest level with the next level.
The next level is the nearest meaningful structure price will actually meet first.
Forgetting old Resistance after price breaks above it.
That area can become Support on a later pullback.
Forgetting old Support after price breaks below it.
That area can become Resistance when price rallies back to it.
Assuming Support must hold.
A level marks an area where price may react. It is not a guaranteed reversal.
Keeping old broken levels on the chart forever.
Levels must be re-read in the context of current structure. Clean your chart.
φ 15

Core Ideas vs. Refinements

Not everything on this page carries the same weight. If you are starting out, master the left-hand column first.

Support and resistance concepts classified as core knowledge or advanced refinement
ConceptPriority
Support is below current price, Resistance is aboveMust know
Levels come from previous price structureMust know
Swing lows create Support referencesMust know
Swing highs create Resistance referencesMust know
Think in zones, not exact pricesMust know
Old Resistance can become Support, and the reverseMust know
Next level = nearest meaningful structure in that directionMust know
A level is an area of interest, not a guaranteeMust know
Higher-timeframe confluenceRefinement
Number of touchesRefinement
Volume behaviour at the levelRefinement
Breakout retestsRefinement
Wick vs. body nuancesRefinement
False breaks and repeated testingRefinement
φ 16

How This Connects to TVT

Support and Resistance are not a strategy on their own. They are context.

AS CONTEXTMarks areas where price may react, in either direction
WITH ELLIOTT WAVEHelps sanity-check where a wave might complete
FOR RISKGives structural reference points rather than arbitrary ones
ON ITS OWNNot a buy or sell signal
Educational framing

A level becomes genuinely useful when it lines up with the broader picture — market structure, wave count, and timeframe context. A horizontal line by itself decides nothing.

See the Elliott Wave Beginner Guide for the structural framework, the ABC Pullback Guide for where corrections tend to complete, and the Trimming & Re-Entry Guide for how TVT uses these areas in practice.

φ 17

TVT Quick Reference

Next Support
Closest meaningful structure below price
Next Resistance
Closest meaningful structure above price
Support
Think floor
Resistance
Think ceiling
Old Resistance
Can become Support
Old Support
Can become Resistance
Levels
Zones, not perfect prices
Important
An area of interest, not a guaranteed reaction
φ 18

If You Remember Only Five Things

The core of this guide
1
Support is below current price. Resistance is above it.
2
To find the next level, look left from current price and find the nearest meaningful structure.
3
Think in zones, not exact prices.
4
Old Resistance can become Support. Old Support can become Resistance.
5
The next level is not necessarily the strongest level — it is the closest one price will meet.
SUPPORT = BELOW = FLOOR
RESISTANCE = ABOVE = CEILING