Support resistance and zones

EN source master · P05-L02 · 30 minutes estimated · needs_review

Offline formative study. No wallet connection, real funds, private keys, signatures, live trade or personal portfolio inputs. Visuals are specifications. This source master remains needs_review; completing the formative exercise does not issue certification.

A hand-drawn line can be moved until every later price seems to respect it. Frozen zones expose that flexibility.

A zone is a declared annotation

Pivot documentation explains local extreme formation [PIVOT]; it does not establish that a future price must turn there. This lesson's zone rule is an original convention. Group two already confirmed highs whose separation is at most 0.5 units, then use their minimum and maximum as the bounds. The tolerance is declared before later bars are inspected.

Preserve formation and test samples

Two highs at 100.2 and 100.6 are separated by 0.4 and form [100.2,100.6]. A later high at 101.2 is outside. Widening the original zone to include it changes the hypothesis; log a new version instead of claiming the original was respected. Touches count observations, not independent votes from different participants.

Specify invalidation

For this exercise the statement 'all later completed reference closes remain at or below the upper bound' is invalidated by any later close above 100.6. An intrabar high above it is a different test. No threshold is an order trigger. Sampling by minute, day or another interval can change the counted touches.

Avoid causal stories

The labels support and resistance are shorthand for observed areas, not hidden buyer/seller intent. Two nearby turns may occur by chance. A zone can be meaningful for the declared sample yet fail under another regime. Confirmation lag, tolerance choice and missing volume limit interpretation. State what would change the description and what evidence is absent rather than promising a bounce.

• Zone: bounded interval created by a stated rule.
• Formation sample: observations used to construct the interval.
• Test sample: later observations excluded from construction.
• Tolerance: allowed grouping distance.

ILLUSTRATIVE confirmed highs A=100.2 and B=100.6; grouping tolerance 0.5. Later complete bars C high=101.2 close=100.4; D high=101.1 close=100.8. These are fictional supplied extremes and closes, not exchange captures.

Display frozen [100.2,100.6] band; formation markers A/B, test C/D; distinguish high crosses from completed-close tests. Show no open price, volume or full OHLC candle where absent.

The original grouping condition and which test closes exceed the frozen bound.

Future turning points, resting orders, participant intent or robust market support.

• OBSERVED: FIX-P05-L02 gives C close=100.4 and D close=100.8.
• INFERRED: A/B satisfy the original 0.5 grouping convention.
• UNKNOWN: resting-order distribution near the zone.
• INSUFFICIENT EVIDENCE: this zone guarantees reversals.

• Redrawing after a failure.
• Counting a wick as a close.
• Inferring intent from two turns.

Compute separation and zone bounds. Apply the stated completed-close condition at C and D. Record the result if grouping tolerance had instead been 0.3, without rewriting the first rule.

Deliver calculations or annotations, claim/source table and limitations. Suggested allocation: study 12 minutes, exercise 8, correction/quiz 10; estimate subject to calibration.

• Freeze bounds before tests.
• Declare close-versus-extreme rule.
• Keep rule versions.
• Avoid turning-point certainty.

A useful zone has immutable formation inputs, explicit test criteria and a recorded failure boundary.

• Freeze a zone's bounds and formation sample.
• Write a falsifiable descriptive boundary test.

P05-L03 after correction review.

NONE in the authoritative catalog. The supplied offline fixture/package is sufficient; no paid feature or unverified Production capability is required. Lab/certification metadata denotes downstream associations, not access gates or live awards.

• [PIVOT] TradingView — Pivot Points High Low — Neighbor-bar pivot confirmation; our strict one-bar rule is a teaching convention. Checked 2026-10-01; locator turn11view1.