Rules of thumb

• Treat levels as zones, not exact prices.
• The more times a level has held, the more traders watch it. That can also make a clean break more significant.
• Old resistance that breaks often acts as support later (the role-reversal idea).
• An uptrend is a series of higher highs and higher lows. A downtrend is the reverse.
• Draw trendlines through the lows in an uptrend and through the highs in a downtrend.