Support & Resistance Zones Guide

Support and Resistance (S/R) zones are fundamental to successful trading. RelicusRoad Pro automatically identifies and displays these critical price levels where market reactions are highly probable.

Understanding S/R Zones

What Makes Our Zones Different

Traditional S/R uses static lines. RelicusRoad Pro creates dynamic zones that:

Adapt to market volatility
Show strength through color intensity
Update based on recent price action
Include volume validation
Integrate with AI analysis

Zone Formation

Zones form through:

Multiple price rejections
High volume nodes
Psychological levels
Previous swing points
Institutional order flow

Types of Zones

Primary Zones (Thick Bands)

Characteristics:

Tested 3+ times
Strong volume confirmation
Clear visual boundaries
Higher probability reactions

Trading Applications:

Major reversal points
Strong breakout levels
Stop loss placement
Profit targets

Secondary Zones (Thin Bands)

Characteristics:

1-2 tests only
Developing strength
Potential future importance
Lower probability initially

Trading Applications:

Scalping opportunities
Partial profit areas
Trail stop levels
Confluence confirmation

Multi-Timeframe Zones

The indicator shows zones from:

H1: Intraday structure
H4: Daily bias levels
D1: Major swing points
W1: Long-term structure
M1: Macro levels

Hover over any line to see its timeframe origin.

Trading Strategies

Strategy 1: Bounce Trading

The Setup:

Price approaches strong zone
Momentum slows (smaller candles)
Rejection candle forms
Entry on retest

Entry Checklist:

Zone tested 3+ times before
Confluence with other indicators
Appropriate risk:reward (1:2 minimum)
Clear stop loss placement

Example:

EUR/USD approaches 1.0950 resistance
Bearish pin bar at zone edge
Short entry: 1.0945
Stop loss: 1.0960 (above zone)
Target 1: 1.0920 (previous support)
Target 2: 1.0900 (major level)

Strategy 2: Breakout Trading

Valid Breakout Signals:

Strong momentum candle
Above average volume
No immediate reversal
Successful retest

The Process:

Initial Break: Price closes beyond zone
Pullback: Return to zone edge
Confirmation: Bounce from broken zone
Entry: On confirmation candle

False Breakout Protection:

Wait for candle close
Require body beyond zone
Check higher timeframe
Verify with volume

Strategy 3: Zone-to-Zone Trading

Concept: Trade from one major zone to another, capturing entire moves.

Implementation:

Identify clear range boundaries
Enter at zone edge with reversal signal
Target opposite zone
Use neutral areas for scaling

Best Conditions:

Ranging markets
Clear zone definition
No major news pending
Proper risk management

Advanced Zone Analysis

Zone Strength Assessment

Strong Zones Have:

Multiple clean bounces
Increasing volume on tests
Alignment across timeframes
Round number proximity
Historical significance

Weak Zones Show:

Partial penetrations
Decreasing reaction strength
Lower volume on tests
Conflicting timeframes
Recent formation only

Confluence Trading

Maximum probability when zones align with:

Liquidity Levels
Fibonacci retracements
Moving averages
Trendlines
Session highs/lows

Zone Modification

Zones evolve through:

Strengthening: More tests = stronger zone
Weakening: Multiple penetrations
Shifting: Market structure changes
Merging: Nearby zones combine
Breaking: Complete failure

Practical Applications

Day Trading Setup

Morning Routine:

Mark overnight zones
Note yesterday’s zones
Identify week’s major levels
Plan trades at zones
Set alerts for approaches

Execution Rules:

Trade major zones only
Require confirmation
Respect session timing
Use appropriate sizing
Track zone performance

Scalping Techniques

Quick Trades at Zones:

M1/M5 timeframes
Minor zone bounces
5-10 pip targets
Tight stop losses
High win rate focus

Requirements:

Fast execution
Spread awareness
News calendar
Mental stops
Quick decisions

Swing Trading

Position Trading:

Focus on D1/W1 zones
Major level reactions
100+ pip targets
Wider stop losses
Fundamental alignment

Risk Management

Stop Loss Placement

Beyond the Zone:

Zone Edge: 1.1000
Buffer: 10 pips (ATR-based)
Stop Loss: 1.1010

Why Buffer Matters:

Accounts for spreads
Allows for spikes
Reduces false stops
Improves win rate

Position Sizing

Zone-Based Calculation:

Measure zone width
Add buffer distance
Calculate pip risk
Apply 1-2% rule
Determine lot size

Multiple Positions

Scaling Strategy:

Entry 1: Zone touch (33%)
Entry 2: Confirmation (33%)
Entry 3: Momentum (34%)

Common Pitfalls

Trading Mistakes

❌ Trading Weak Zones

Require 3+ historical tests
Verify on multiple timeframes
Check volume confirmation

❌ Ignoring Context

Consider overall trend
Check news calendar
Respect session characteristics

❌ Poor Timing

Avoid pre-news trading
Wait for session opens
Skip low liquidity periods

Psychology Issues

Fear of missing zones
Overtrading every zone
Revenge trading breaks
Ignoring stop losses
Fighting failed zones

Performance Metrics

Expected Results

Win Rates by Strategy:

Bounce trades: 68-72%
Breakout trades: 55-60%
Zone-to-zone: 70-75%

Risk:Reward Ratios:

Minimum: 1:1.5
Target: 1:2
Optimal: 1:3+

Tracking Performance

Monitor:

Win rate per zone type
Average R:R achieved
Best performing pairs
Optimal timeframes
Session statistics

Integration with Other Features

Best Combinations

S/R + Liquidity Levels
- Double confirmation
- Stronger reactions
- Better targets
S/R + Arrow Signals
- Entry timing
- Direction bias
- Exit signals
S/R + Sessions
- Time-based edge
- Volume alignment
- Volatility awareness

FAQ

Q: How often do zones update? A: Continuously based on price action, with major updates at session opens.

Q: Can zones disappear? A: Yes, weak zones fade if not respected. Strong zones persist longer.

Q: Which timeframe is best? A: M15-H1 for day trading, H4-D1 for swing trading.

Q: How many zones should I trade? A: Focus on 3-5 major zones per session for clarity.

Continue learning with Signal Lines or explore Trading Strategies.

Support & Resistance

Accuracy

Best Timeframes

Difficulty