Part Two — Classifying Levels
Chapter 4 — Major Support & Resistance
Major Support & Resistance are areas where price reaches, changes direction, and continues to move significantly.
The definition is unchanged — what changes is the scale of the continuation and the timeframe on which it is visible. A major level turns the direction of the market itself, not just the current leg.
Where major levels are found
- Daily — the level that ended a multi-day move and started the next one
- Weekly — boundaries that have contained price for weeks or months
- Monthly — long-term reference prices respected across market cycles
Institutional zones
The strongest major levels usually show three characteristics: a sharp, decisive move away from the level; more than one reaction over time; and alignment with an obvious reference price such as a monthly high, a weekly low or a psychological round number.
Long-term market structure
Major levels define the map: where the market is trending, where it is ranging, and where a range ends. Start your analysis on the higher timeframe so that every lower-timeframe decision is made inside a structure you already understand.
Key concepts
- Major S&R changes significant direction
- Daily, weekly, and monthly levels carry weight
- Major levels frame market structure
Practical example
A weekly low that ends a multi-week decline is more significant than an intraday pause.
Common mistake
Giving a five-minute reaction equal weight to a weekly boundary.
Knowledge check
Check your understanding
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