Support and resistance: zones, more than lines
Support and resistance are price areas where the market has reacted before. Cryptokly groups nearby pivots into zones up to one ATR wide and counts every touch.
What they are
A support is a price area below the current price where the market has paused or turned before. A resistance is the same kind of area above the price. They are places where a reaction happened in the past, and they describe history.
Price rarely reverses at one exact value, so a zone, a band of prices, fits the chart better than a single line.
How we compute them
The engine finds swing highs and swing lows on each chart, then groups pivots that sit close together into one zone. A zone is at most one ATR wide. The number of pivots inside it is its touches count: more touches means the market reacted in that band more often.
When price sits inside a zone, the zone's two edges act as the nearest support and the nearest resistance. The levels come from closed candles only.
Live example
| Timeframe | Support | Price | Resistance |
|---|---|---|---|
| 1M | 60,000.0060,000.00 · 1 touch | Between support and resistance | 80,600.0080,600.00 – 82,850.00 · 2 touches |
| 1W | 76,000.0074,967.97 – 76,000.00 · 2 touches | Between support and resistance | 80,600.0080,600.00 – 82,850.00 · 3 touches |
| 1D | 76,046.58lower edge of the zone | Inside the zone76,046.58 – 76,888.00 · 4 touches | 76,888.00upper edge of the zone |
| 4H | 76,500.1176,325.98 – 76,500.11 · 2 touches | Between support and resistance | 77,620.0077,620.00 · 1 touch |
| 1H | 76,705.0076,705.00 · 1 touch | Between support and resistance | 77,114.0177,114.01 · 1 touch |
How to read them
Read each row as a statement about one chart: "on this timeframe, the nearest zone below is here, the nearest zone above is there". A zone on 1W covers a broad area and a zone on 1H covers a narrow one, so compare zones within the same chart first and then across charts.
A zone with many touches is a band the market has respected often. A zone with one or two touches is a lighter observation. Both are descriptions of past behaviour, and either one can break.
Common mistakes
- Drawing a single line. Use the whole band; the edges matter as much as the middle.
- Ignoring the timeframe. A 1H zone and a 1W zone answer different questions, so label each reading with its chart.
- Treating a zone as a certainty. Zones break, and crypto trading carries a real risk of losing money, up to the whole amount invested.
- Mixing charts in one picture. Take levels from one chart at a time, then compare.
Questions
What does a touch count mean?
It is the number of pivots that fall inside the zone. Each pivot is a swing high or swing low where the market reacted.
Why can a zone have the same low and high as another chart's zone?
Each chart is analysed separately, so two charts can find the same band when the same pivots show up on both.
What happens when price is inside a zone?
The table shows the zone as one band and labels its edges as the support and the resistance.