How to Read Support and Resistance

Support and Resistance (SR) are the fundamental coordinates of the market. Rather than simple lines, they represent Institutional Reaction Zones where price action tends to reverse, pause, or break out with high volatility.

1) What is Support? (The Demand Zone)

Support is a price level or area where buying pressure outweighs selling pressure, preventing the price from falling further. Think of it as a floor built on high demand.

• Rebound Potential: Price historically bounces off these levels.
• Accumulation Area: Where smart money often buys.
• Bearish Breakout: A clean break below support suggests a significant shift in market sentiment.

2) What is Resistance? (The Supply Zone)

Resistance is a price level where selling pressure overcomes buying interest, stopping the price from moving higher. It represents a ceiling built on heavy supply.

• Rejection Potential: Price often "wicks" or reverses at these zones.
• Distribution Area: Where traders often take profits or enter short positions.
• Bullish Breakout: Breaking resistance turns it into potential support (The SR Flip).

3) The "SR Flip": Role Reversal

When a key resistance level is broken, it often becomes a new support level. This "Break and Retest" pattern is one of the highest-probability setups in price action trading.

4) Static vs. Dynamic SR Zones

Traditional analysis uses horizontal lines (static). However, in volatile markets, levels are often dynamic (moving with volume and trend).

Support & Resistance in Rany Sniper Signals

Our engine automates the detection of these zones using Multi-Timeframe (MTF) logic:

• MTF Visualization: See Higher Timeframe (HTF) zones while trading on Lower Timeframes.
• Adaptive Smoothing: Reduces chart noise by identifying only the most significant reaction areas.
• Confluence Scores: Signals are filtered based on their proximity to these key zones.

How to Trade SR Zones Like a Pro

• Identify Context: Look for confluence between HTF support and LTF buy signals.
• Avoid Chasing: Never enter a long position directly into a strong resistance zone.
• Define Invalidation: Place stop losses behind the zone, as price may "hunt" liquidity just outside it.