The Psychology of Support and Resistance Zones
1. s/r help a trader understand market structure
2. s/r shows where trader are placing their order
3. s/r levels are self-fulfilling [traders expect price to react]
4. r/s create market memory why the last trade had it r/s and trap traders
5. s/r zones often form around round numbers
6. high r/s caused by presence of sharp bid reversals
7. high r/s multiple instances of price bouncing off them
8. major swing high and lows
9. the ability to act as both s/r
10. visually obvious on a chart
11. levels are new recently respected
12. multiple traits
