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backend/skills/market_reading/support_resistance/SKILL.md). Install upstream withnpx skills add VictorJK-jpg/Tradingbot --skill support_resistance. Copyright stays with the author.
Definition
Support = price area where buying pressure historically overcomes selling pressure. Resistance = inverse.
How to Draw Valid Zones
- Minimum 2 touches on the same horizontal level.
- Wicks matter more than bodies — the extreme is what sellers/buyers defended.
- Recency: Zones formed in the last 30 days are stronger than 6-month-old zones.
- Volume: High-volume rejection candles validate a zone.
Types
- Major S/R: Daily/weekly swing highs/lows — hard to break, strong reversals expected.
- Minor S/R: 1H/4H local levels — break easily, use for precise entry only.
- Dynamic S/R: Moving averages (20 EMA, 50 EMA, 200 EMA) act as living support/resistance.
Flip Zones
When resistance breaks and price retests it from above, it becomes support. These are the highest-probability entry areas.
Trap Patterns
- Bull trap: Price breaks resistance with low volume, quickly reverses. = Short signal.
- Bear trap: Price breaks support with low volume, quickly reverses. = Long signal.