Support and Resistance

Learn to identify and utilize key support and resistance levels for more informed trading decisions using pure price action analysis.

Published · Updated · Methodology: Price Action

Part of: Support & Resistance

  • Methodology: Price Action
  • Content type: educational

Source video

Decoded from: How To Use Support and Resistance the RIGHT Way by Carmine Rosato — watch the original

Strategy overview

Support and resistance is the practice of marking price levels where buying or selling has repeatedly stalled or reversed and treating them as reference points for later decisions. What sets this entry apart from most S/R material is the title: Carmine Rosato's "How To Use Support and Resistance the RIGHT Way" is framed as a correction, not an introduction. A video that promises the right way is arguing against a wrong one — which makes its real content diagnostic. The payload is what it claims traders are already doing badly with their levels, not a procedure being taught from zero.

That framing is worth taking seriously, because support and resistance is one of the few tools almost everyone adopts early and almost nobody revisits. Levels get drawn once and then inherited for months; a line that meant something in one regime keeps being defended long after price stopped acknowledging it. A corrective take has to settle which part of that drift it is attacking — how levels are selected in the first place, how precisely they are expected to hold, or how much weight a single line is asked to carry alone. This entry is catalogued under price action with no indicators, no timeframes and no chapter markers on record, so it is support and resistance handled on its own terms: one undivided argument about a single tool, with no supporting stack to fall back on.

No rules were extracted from this video, so there is no rule set behind this page and nothing here should be read as one. What does carry over is the question the title puts on the table — whether your own levels are being used as evidence or out of habit, chosen for a reason you could still articulate today or simply carried forward because you drew them once. That question is best answered against the source directly, and it costs nothing to apply if it lands.

Topics

support and resistance · price action · trading strategy · technical analysis · tradingview strategy · market structure · swing trading · day trading · forex strategy · crypto trading strategy · stock trading strategy · how to trade support and resistance

Frequently asked questions

What does it mean to use support and resistance the "right way"?

There is no single agreed-upon right way. As used in this video's title, the phrase signals a corrective take — an argument that some common habit in how traders draw or trade levels is working against them. The specific correction is made in the source video; no rules were extracted for this entry.

What are the most common mistakes traders make with support and resistance?

Commonly cited ones include treating a level as an exact price instead of a zone, leaving old levels on the chart long after the market stopped reacting to them, and entering on the level alone without confirmation or a defined invalidation point. Which of these this particular video targets is answered in the source itself.

Do you need indicators to trade support and resistance?

No. Support and resistance is a price action method — the levels come from the chart's own record of highs, lows and reaction points. This entry is catalogued under price action with no indicators and no timeframes on record, so it treats levels without any supporting toolset attached.

Does this page include the exact rules from the video?

No. No rules were extracted for this entry, so there is no entry, exit or risk breakdown behind it. Strategy Decoder publishes decoded structure only where a source's logic can actually be extracted; for this one, the video remains the reference.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

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