Chapter 16 — Frequently Asked Questions

Forty foundational questions about applying Support and Resistance with context, patience, and disciplined risk.

What is the official InstaSwich definition of support?

Support is any level where the price of an asset reaches, changes direction and continue to rise.

What is the official InstaSwich definition of resistance?

Resistance is any level where the price of an asset reaches, changes direction and continue to fall.

Do I need all three parts of the definition?

Yes. Price must reach the level, change direction there, and continue away from it. If any part is missing, treat it as an idea, not a level.

Is a level a single price or an area?

Treat it as an area. Price rarely turns at the same exact number twice. Use the body edge as the core and the wick extreme as the outer limit.

What is the difference between minor and major levels?

Both satisfy the definition. Minor levels produce small, temporary reactions. Major levels are areas where price reaches, changes direction and continues to move significantly.

What is external support and resistance?

The major market boundary — the outer edge that contains the current range.

What is internal support and resistance?

The smaller reactions that occur inside the larger range.

Which timeframe should I mark levels on?

Start with H1, H4 and Daily. Those levels are then projected down to M15 and M5 for observation.

Should I draw new levels on M5?

No. Lower timeframes are for observing the reaction to levels you have already identified higher up.

Why use a line chart at all?

It shows only closing prices, which removes noise and reveals the prices the market actually settled on.

Do I mark levels from wicks or bodies?

Use both. The body edge gives the core of the level and the wick extreme gives its outer boundary.

How many levels should be on my chart?

Few. A clean chart with three meaningful levels beats a chart covered in twenty.

What counts as confirmation?

Visible evidence of the change of direction — rejection of the extreme and a close back away from the level, with follow-through.

Can I enter before confirmation?

Not under the InstaSwich conservative methodology. Entering before confirmation is predicting, not trading.

Where do I place my stop loss?

Beyond the level, at the price where the idea is proven wrong. Never at a distance chosen for comfort.

Should I ever move my stop loss further away?

No. Moving a stop away converts a planned small loss into an unplanned large one.

Can I move my stop to break even?

Reducing risk once a trade has moved meaningfully in your favour is acceptable. Increasing risk is not.

How do I choose a target?

Read it from the chart — the nearest opposing internal level first, then the external boundary.

What risk-to-reward should I look for?

The reward to the first realistic target should justify the risk. If it does not, the trade is declined.

How much should I risk per trade?

A fixed, small percentage of the account, commonly 1% to 2%, decided in advance and applied to every trade.

Why does a level stop working?

Levels eventually break because the underlying imbalance has been resolved. A broken level often becomes relevant again from the other side.

What is a retest?

Price returning to a level it has just broken, approaching from the opposite side.

Are round numbers really levels?

They frequently are, because orders cluster there. They are strongest when they coincide with another reference such as a prior high or low.

Do moving averages count as support and resistance?

They are a dynamic reference used by many participants. Treat them as one type of reference, not as a rule of their own.

Why does price spike through a level then reverse?

Obvious levels attract clustered orders. Large participants need that liquidity to fill. This is why confirmation, not the touch itself, is the trigger.

Should I trade during high-impact news?

The conservative methodology avoids it. Spreads widen, slippage increases and levels behave unreliably.

Which sessions suit this method?

Levels are valid in every session, but reactions are cleanest when liquidity is good — London, and the London to New York overlap.

Does this work on gold?

Yes. The concept applies to any freely traded market. Gold's volatility means position sizing has to be adapted, which is covered in the Introduction to Gold Trading course.

How long before I am consistent?

That depends on screen time and discipline, not on the course length. Consistency comes from repeating a process, which is exactly what the premium programmes are built to develop.

What is taught in Advanced Training that is not here?

The complete InstaSwich execution methodology — advanced level qualification, professional entry models, multi-timeframe execution rules, advanced trade management and strategy playbooks.

How does Support form?

It is observed when price reaches an area, changes direction there and continues to rise. The reaction, not the drawing tool, establishes the level.

How does Resistance form?

It is observed when price reaches an area, changes direction there and continues to fall. All parts of the sequence matter.

Why are previous highs important?

They are visible reference prices where sellers, profit-taking, stops or breakout orders may gather. Price must still confirm their present importance.

Why are previous lows important?

They can mark earlier buyer response and clustered orders. They are references to observe, not guaranteed floors.

Can Support fail?

Yes. When buyers no longer control the area, price can trade and close through Support. Every trade therefore needs a defined invalidation point.

Can Resistance fail?

Yes. Strong demand can push price through Resistance. Wait for current price behaviour instead of assuming the old reaction must repeat.

Can Support become Resistance?

Yes. After a confirmed break, price may revisit the former Support from below and react as Resistance. This is a role reversal, not a guarantee.

Can Resistance become Support?

Yes. After a confirmed break, a former Resistance area may become Support when revisited from above, provided price confirms the reaction.

Why is patience important?

The level can be identified before the opportunity is ready. Patience allows the market to provide reaction and confirmation instead of forcing a prediction.

What should I study after completing this course?

Review the foundation on your own charts, practise the complete checklist, and consider Beginner Training, Advanced Training or Mentorship when you are ready for deeper execution.