SHY81.77
Entry82.02Open--Stop80.59
Support is an area where declines have previously attracted buyers; resistance is where rallies have met sellers. They can be horizontal or diagonal, and they are better treated as zones to test than exact promises.
Support describes a location below price where buying previously absorbed selling. Resistance describes a location above price where selling previously absorbed buying. The labels describe the market’s current relationship to a level, not a permanent property of that price.
Horizontal levels connect similar prices. Diagonal support and resistance follow rising or falling paths through time; those diagonal levels are trend lines.
A zone is useful because markets trade continuously while charts compress prices into candles. An exact single-price line is convenient for rules, but the chart should not imply that every legitimate reaction must hit the same decimal.
Our research did not find a dependable edge from raw displayed lines alone. The historical results below belong to TradingPal’s named support and resistance setups, which define the context, entry, invalidation and exit together.
That distinction prevents a common statistical mistake: assigning the outcome of a carefully filtered strategy to every hand-drawn level that happens to look similar.
Historical simulation of the complete named setup, not a generic trend-line result. Weekly is the primary view. Read the methodology →
One real support and resistance — detected on SHY near 82.02 with a 84.89 target.
Live chart and line geometry. This example is not a promise or a claim that it is today's top-ranked setup.
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163 matching setupsin this guide's latest scan.
After price crosses a level, traders often watch the same area from the other side. Former resistance may become support on a pullback; broken support may cap a later rally as resistance. This is called a role reversal or polarity change.
A crossing does not guarantee the new role will hold. Define whether a wick, close or later retest confirms the change before reviewing the result.
A bounce approaches a level and moves away without establishing a break. A breakout crosses and continues. A false breakout moves through briefly, then returns. These outcomes look obvious afterward, so the decision rule must specify when the event becomes tradable.
Stops belong beyond the structure that would prove the idea wrong, not at a random percentage chosen after entry. The strategy guide shows how the invalidation and target fit into one reproducible plan.
The level narrows attention to a location. Qualification determines whether the setup belongs in the test; entry and stop rules determine the risk; the exit determines how wins and losses are counted.
For the long and short implementations, see the Buy the Dip and Sell the Rip guides.
Read these limits with the table below.
The sample, instrument scope and dates belong to this exact setup book. Extreme drawdowns remain visible rather than being hidden.
| View | Scope | Trades | Win rate | Expected R | Profit factor | Max drawdown |
|---|---|---|---|---|---|---|
| Weekly | 598 symbols | 6,728 | 34.5% | +3.03R | 2.11 | 100.0% |
| Monthly | 514 symbols | 2,844 | 44.2% | +9.63R | 5.28 | 74.0% |
Backtest window: 2021-12-06 to 2026-07-13. Data snapshot: 7/23/2026. Historical results can differ from live fills and do not predict future performance.
Support is watched below price for buying reactions; resistance is watched above price for selling reactions. A crossed level can later reverse roles.
Usually they are better understood as areas. A systematic test may use an exact reference price, but the surrounding zone reflects normal market noise.
Not automatically. Repeated reactions show recognition, but repeated tests can also weaken the available orders at that location.
There is no universal confirmation. Choose a reproducible rule such as a close or a retest, then test that same rule without hindsight.
A trend line is a straight line that connects meaningful price turns and extends them forward.
Buying the dip means entering after a decline, but a lower price is not enough.
Selling the rip means taking a bearish position after a rally.
Open the screener to compare current setups, their visible lines and their historical track records.
Explore the screener →Educational content, not investment advice. Backtests are historical simulations and do not predict the next trade.