TradingAlpha Support and resistance
The indicator draws green support and red resistance lines. They identify potential reaction areas, not barriers price cannot cross. A level may be tested, broken, or revisited.
Look at nearby levels before evaluating the room available for a move. Use them with your setup's own invalidation rather than assuming the nearest green line must hold.
Alpha Volume
The guide uses two horizontal thresholds to categorize participation:
| Volume reading | Interpretation |
|---|---|
| Below the red threshold | Low volume |
| Above the red threshold | High volume |
| Above the green threshold | Extreme volume |
A high-volume move can support a setup's context, but volume by itself does not determine direction. Read it alongside the price move and the signal.
Put the tools together
Identify the reversal or breakout first. Then check whether price is moving into a nearby resistance/support area and whether participation is increasing. Record each observation separately.
If the market feed has no useful volume, do not treat missing volume as a confirmed low-volume reading. Different exchanges and feeds may report different activity.