Proper way to draw support and resistance: 90% of people do it backwards

The previous two articles covered trading filtering mechanisms and genuine vs. false breakouts. Today, we delve into the most core technical fundamentals:
How exactly do you draw support and resistance?
90% of traders lose not because they can't read signals,
but because they draw support and resistance incorrectly, going against the trend.

1. Why does your support and resistance always get broken instantly?

Many people draw support and resistance all wrong:
Just pick two points randomly and draw a line
Only look at small timeframes, ignore the big picture
Treat shadows as valid high and low points
Draw more and more lines, making it increasingly chaotic

The result is:
Buyers get stopped out immediately, sellers get squeezed out, and the market repeatedly traps you.

Support and resistance are not just "drawing lines,"
they are traces left by capital flows.

2. The 3 iron rules for drawing support and resistance (must remember)

1. Only consider the body, not the shadows
Valid high and low points: based on the candlestick bodies
Long upper or lower shadows: are false signals, not valid levels

2. The more times a level is touched, the stronger it is
If a level is touched more than 3 times, it’s a strong support/strong resistance
Levels touched only once have little reference value

3. Larger timeframes take precedence over smaller ones
4-hour > 15-minute
Daily > 4-hour
Support and resistance on higher timeframes can directly change the trend on lower timeframes

3. Correct drawing method: one step to perfection

Support level drawing
1. Find the most recent downtrend
2. Connect the lows of the candlestick bodies
3. Choose the line that is touched most frequently
4. As long as it’s not broken, it’s a bullish defense zone

Resistance level drawing
1. Find the most recent uptrend
2. Connect the highs of the candlestick bodies
3. Choose the line that is touched most frequently
4. As long as it’s not broken, it’s a bearish defense zone

Truly useful lines are only 2-3 on the entire chart; more than that is just chaos.

4. How to use support and resistance for trading?

1. Only open positions near support and resistance
Avoid trading in the middle zones.
2. Wait for a breakout and retest for safety
Break resistance → retest becomes support → go long
Break support → retest becomes resistance → go short
3. If the position is wrong, even a perfect signal should be abandoned
Avoid false breakouts and golden crosses far from key levels—they are traps.

5. The 3 most common pitfalls

1. Confusing moving averages with support and resistance
Moving averages are just references, not actual capital levels.
2. Drawing lines too densely
More lines mean less reference value.
3. Focusing on only one timeframe
Smaller timeframes obey larger ones; going against the big trend leads to losses.

6. One sentence summary

Support that doesn’t break is a buy signal; resistance that doesn’t break is a sell signal.
Trade only at key levels, avoid messing around in the middle.

This is the foundation of all trend, breakout, and filtering systems.
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