Level setups
Approaches, bounces, sweeps, ranges, retests - everything related to the interaction of price and key levels.
About this section
This section collects situations at key support and resistance levels: price approaching a level, a bounce, a breakout with confirmation, a fakeout and a return to a broken level. A level is a price that has already turned the market before.
Every level has a scale: daily, weekly, monthly or all-time. The larger the scale, the more participants see it and the more significant the reaction. The card appears in advance, before price reaches the level, so there is time to prepare rather than chase.
Fakeouts are marked separately - when price briefly pokes through a level with a thin candle, takes out other traders stop-losses and returns. It is one of the most common traps in crypto and, at the same time, one of the most useful hints about a large participant intentions.
What the bot looks for
Price is moving toward an important point on the chart and getting close to it. The setup appears in advance - when the approach is already visible but price has not yet reached the level.
A level is a price that in the past worked as support or resistance. At levels a reaction usually occurs: a bounce or a breakout. The setup is a warning of the approach. The specific breakdown and scenarios are in Pulse AI.
Price touched an important point and turned around - the level held the pressure. Confirmation that the level is working in the current session.
After touching the level price went the other way - the level is still relevant. After this two options are possible: a continuation of the bounce or a repeat test of the level. Both scenarios are in Pulse AI.
Price briefly went beyond the level with a thin candle, knocked out other traders’ stop-losses and returned. One of the strongest signals in the SMC methodology.
Behind support there are usually longs’ stops, behind resistance - shorts’ stops. When a large player deliberately drives price beyond the level and brings it back - that is collected liquidity plus a position in the opposite direction.
Price broke an important level - the candle closed beyond the level and the next candle confirmed the consolidation.
A breakout without consolidation often turns out to be false. Here the next candle confirmed that price held beyond the level. After this two options are possible: a continuation beyond the level or a false breakout with a return into the range - often, before continuing, price returns to the level for a retest. Both scenarios are in Pulse AI.
After a breakout price returned to the level and did not cross it back. A level that used to be resistance now works as support (or vice versa).
Price tested the broken level in its new role. After this the level will either hold and the movement will continue, or it will be broken back - then the breakout turns out to be false. Which scenario plays out will be shown by the reaction at the level itself. More detail is in Pulse AI.
Frequently asked questions
A price where the market has already turned in the past. Support sits below the current price and acts as a floor, resistance sits above and acts as a ceiling.
In a real breakout the candle closes beyond the level and the next one confirms it. In a fakeout price crosses the level intrabar and returns, collecting other traders stop orders on the way.
Price returning to a level after breaking it. Broken resistance often starts acting as support and vice versa. If the level holds, the move usually continues.
Daily, weekly, monthly and all-time. The scale is shown on the card and should be matched to your trade horizon: a monthly level reacts more strongly, but takes longer to reach.