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- Why Most Traders Get "Support and Resistance" Dead Wrong
Why Most Traders Get "Support and Resistance" Dead Wrong
And here's how you fix it
Want to know one of the biggest mistakes I see traders make?
They treat support and resistance levels like magic lines in the sand…
Like somehow, these exact price points will automatically stop a stock from moving further.
When I began trading, I used to think the same way and it cost me thousands in losses…
Here's what nobody tells you about support and resistance...
These aren't just static lines on a chart.
They're dynamic zones where supply and demand battle it out.
And understanding how they work can completely transform your trading.
You see, when you’re watching price movement hat old resistance level often becomes new support it's like the floor and ceiling of a building switching places.
Think about it this way...
If you’re playing basketball and you throw the ball up, it doesn't just stop at the exact height where your energy runs out, but it gradually slows down, maybe hovering for a moment, then starting to fall back.
Trading works the same way.
Prices don't just stop dead at support or resistance, they often push through slightly, shake out the weak hands, and then reverse.
Or they'll test the level multiple times before finally breaking through.
Most traders get frustrated after putting their stops exactly at support levels, only to get knocked out before the move they were expecting actually happens.
Instead, you need to wait for confirmation and look for signs of strength or weakness rather than assuming the level will automatically hold or break.
Because here's the truth...
Support and resistance aren't about precise prices.
They're about understanding how other traders will likely react at these levels – and then positioning yourself accordingly.
That’s All,
Team Theta Warrior