STRONG LEVELS: WHY SOME LEVELS HOLD AND OTHERS BREAK - CHEAT SHEET You voted, 35 of you picked this one. Not every line on your chart is a level. A strong level is a place where the market already fought, and remembers it. 1. HISTORY A level tested many times as resistance becomes a strong support once it breaks. And vice versa. WHY: every rejection there left orders and memory behind. The market remembers where it fought. 2. TIME The longer price gravitated around a level, the more relevant it becomes. WHY: more time means more positions opened there, and more traders who care about that price. 3. EVERY TEST MAKES IT WEAKER The more a level gets tested, the weaker it becomes. WHY: each test eats the orders defending it, and builds a big pool of liquidity just above or below. RSI and volume on each test tell me when it's about to give up. 4. THE FLIP MAKES IT STRONGER Once a heavily tested level breaks and flips, it becomes even more relevant. WHY: old resistance turns into support, and the retest is where the new side defends it. 5. DON'T TRADE A TIRED LEVEL BLIND A level tested many times is not one I trade as it is. Either I wait for the flip and play the retest, or I wait for the deviation. WHY: all that liquidity beyond the level is a target. The market often takes it before choosing a direction. 6. CONFLUENCE My strongest levels line up with the relevant trend of that coin and the key fibs. WHY: one reason can fail. Two independent reasons at the same price is where the big reaction comes from. PRO TIP: if a level is strong, I want to see a strong reaction. If the reaction isn't decisive, maybe the level isn't that strong. Protect the capital. Protect the process.