Trading Strategies
Support and Resistance
Price zones where buying (support) or selling (resistance) has repeatedly stopped the market. The base layer of most futures trade plans.
In plain English
Support and resistance mark remembered prices: prior highs and lows, session opens, gap edges, high-volume shelves. Markets react at them because participants anchor decisions there, which is what gives fades and breakouts at these zones their edge.
Practically every prop-friendly strategy is a decision rule about these zones: fade the touch, trade the break, or buy the retest. Levels work as zones, not lines; wick-throughs are normal, and stops belong beyond the zone, not inside it.
- Yesterday's high at 5015 caps ES twice this morning.
- The third test breaks and holds above; the trader flips from fading the level to buying its retest.