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Lesson 6 — Classic Support and Resistance II

Refine support and resistance by judging level quality, role reversal, fresh zones, exhausted zones, and major versus minor levels.

Lesson 6 30:21 Trading Foundations: Markets, Language, and Technical Basics
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Lesson Notes

After learning basic support and resistance, students must learn level quality. Not every reaction deserves a line. Some levels are major decision zones; others are weak, noisy, or no longer useful. A professional chart should be clean enough to support decisions.

This lesson introduces major and minor levels, fresh and exhausted levels, role reversal, breakout retests, and failed breakouts. A broken resistance can become support because traders reprice expectations around that area. A broken support can become resistance for the same reason.

Students learn to evaluate whether a level is useful based on reaction strength, context, clarity, and location. The objective is not to fill the chart with levels. The objective is to identify the few zones that matter enough to create a plan.

Homework

1. Find three examples of role reversal.
2. Mark major and minor levels separately.
3. Remove weak levels from one chart until only the cleanest zones remain.

Quiz / Exam Questions
  1. 1. What is role reversal?
  2. 2. What makes a level major?
  3. 3. What is a fresh level?
  4. 4. What is an exhausted level?
  5. 5. Why does chart cleanliness matter?