Key phrases: support resistance zones, draw support resistance, S/R zones EURUSD, S/R zone trading

Why S/R Are Zones, Not Precise Lines

Price reacts to areas where many market participants find value—not a single price point. Order clusters, stop placement and differing timeframes create a band of interest. Treating support and resistance as a zone accounts for spread, slippage, differing candle anatomy (wicks vs bodies), and falses. Using zones reduces noise and increases the probability that a level will hold.

How to Draw S/R Zones: Step-by-step

1. Choose timeframe context. Start with the higher timeframe relevant to your trade (daily for swing, 4H for medium-term, 1H for intraday).
2. Identify the swing extremes. Mark recent swing lows (support) and swing highs (resistance) on that timeframe.
3. Use candle bodies and wicks. Draw the zone from the extreme of bodies to include wicks if they represent real reaction points. For resistance, top edge of zone = highest wick or rejection candle high; bottom edge = the highest close beneath it (body). For support, bottom edge = lowest wick or rejection low; top edge = the lowest close above it.
4. Require multiple touches. Prefer zones with at least two clear touches on the reference timeframe. The more distinct reactions (touches), the stronger the zone.
5. Expand for noise. Add a few pips/points to zone edges to account for spread and microstructure—this prevents over-precision.

EURUSD and DAX Examples

EURUSD example: On the 4H chart a swing high cluster formed between 1.0800 and 1.0850. The highest wick reached 1.0850 while the candle closes below at 1.0820. Draw the resistance zone from 1.0850 (upper edge) down to 1.0820 (lower edge). Note two prior rejections within that band on the 4H structure—this confirms relevance.

DAX example: On the daily chart, price found support around 15,200 — wicks touched 15,150 and candles closed around 15,230. Set the support zone from 15,150 (lower edge) to 15,230 (upper edge). Subsequent intraday tests that enter and reject the band indicate the zone is active.

Practical Rules When Drawing Zones

• Always start from higher timeframe structure and then refine on lower timeframes.
• Use bodies to represent accepted price and wicks to capture rejections—both matter.
• Zones should be wide enough to include multiple touches but narrow enough to be actionable.
• Label zones by timeframe and reason (e.g., Daily Resistance — swing high cluster).

Common Mistakes

• Drawing too many levels: Every chart will have numerous potential S/R points. Prioritize zones with multiple touches and higher-timeframe relevance.
• Ignoring trend context: Treating a counter-trend zone the same as a trend-aligned zone leads to poor probabilities. In a strong uptrend, resistance breakouts are more likely than sustained resistance holds.
• Forcing touches: Stretching a zone to include a single marginal wick just to claim multiple touches dilutes its validity. If touches are weak or far apart in time, downgrade the zone.

Is This Zone Meaningful? — Quick Checklist

• Was it identified on an appropriate higher timeframe?
• Does it include at least two clear touches or reactions?
• Are the zone edges drawn using candle bodies and/or wicks thoughtfully (not just single ticks)?
• Is the zone aligned with the prevailing trend or identified as counter-trend with clear justification?
• Is the zone not stretched to force touches (no weak or distant confirmations)?
• Is the zone wide enough to account for spread and microstructure, but not so wide that it’s meaningless?

Treat S/R as probabilistic zones rather than absolutes. Focus on higher-timeframe confirmation, clear candle-based edges, and multiple touches. Use the checklist before trading a zone to improve edge and reduce noise.