A practical visual guide to support, resistance, trendlines, candle context, momentum indicators, and risk planning.
Support Reversal · original schematic
A reversal idea begins with a prior move and a level where price response may change. Seek confirmation, define invalidation, and treat an indicator as supporting context.
The paths below are simplified teaching diagrams. Draw levels as zones and check live price behaviour on your own chart.
After a decline, price repeatedly tests a support area before moving away.
Mark the area, then watch for a convincing bullish response and follow-through. A close back below support challenges the reversal idea.
After a rise, price struggles near a resistance area and starts to turn lower.
A bearish candle near resistance is context, not confirmation by itself. Observe whether lower highs or a support break follow.
The PDF suggests reviewing active stocks on a daily chart and mapping support and resistance.
An alert near a prior high can prompt review. Wait for the relevant candle and subsequent price behaviour before deciding whether a breakout or pullback has formed.
A single trendline connects successive swing lows or highs; parallel lines outline a channel.
Use clear swing points rather than forcing a line through every candle. A break or retest may signal a change, but false signals occur.
Hammer, engulfing, Marubozu, piercing, shooting star, and dark cloud candles can add context near levels.
Stochastic RSI can show momentum changes, but readings and crossovers are sensitive in choppy conditions. Combine them with price structure and a defined exit.
Identify the prior trend and current market conditions.
Mark the relevant support, resistance, or trendline.
Look for a close, retest, and follow-through rather than a brief touch.
Define invalidation and a position size you can manage.
Open the Day 5 lesson in this series.
This original web lesson follows the topics in the supplied Day 4 PDF, which credits Vidya Phad. The text and diagrams here were newly created for AlphaEdge Pro Academy.
Pattern labels and measured moves are educational examples, not guaranteed predictions or personalized trading advice. Consider the possibility of false signals and losses.