Part One — Principles
Chapter 1 — Understanding Support & Resistance
Everything in this course is built on two definitions. They are the official InstaSwich definitions, and they are used exactly as written throughout every InstaSwich programme.
Official InstaSwich definition · Support“Support is any level where the price of an asset reaches, changes direction and continue to rise.”
Official InstaSwich definition · Resistance“Resistance is any level where the price of an asset reaches, changes direction and continue to fall.”
Reading the definitions properly
Notice that each definition contains three events, in order. Price reaches the level. Price changes direction at the level. Price continues away from the level. All three are required. A level that price reaches but does not turn at is not support. A level where price turns but immediately fails to continue is not a level you would act on either.
Illustrative example
Illustrative example
This is why InstaSwich traders do not mark every horizontal line they can find. A line becomes a level only once the market has demonstrated all three parts of the definition. Until then it is an idea, not a level.
Levels are areas, not hairlines
In practice price rarely turns at one exact number twice. It turns within a narrow area. Mark the level from the price action that formed it — the extremes and the closes — and accept a small zone around it. Demanding perfection from a level is one of the fastest ways to miss the trade and then chase it.
Key concepts
- Reach
- Change direction
- Continue
Practical example
Price reaches a prior low, rejects lower prices, and then advances away from the area.
Common mistake
Calling every historical high or low a valid level without observing the complete reaction.
Knowledge check
Check your understanding
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