Where price reacts
A level is where the market already did something — not a line that looks important.
Mark support and resistance from evidence already on the chart, draw each level as a band with honest width, and justify it in one sentence by naming the finished bars that reacted there. Separate observation from decoration — round numbers, indicator lines and confluence included — and tell a level that merely held from a level that was respected: two different events that are constantly reported as one.
4 chapters · 5 quiz questions · 13 terms · included with a plan
Otus, on this module
Almost everyone draws too many levels. "A line where price might turn" is not a definition — it fits every price on the chart. The working definition fits almost none of them: a level is a price where the market has already visibly reacted. Everything checkable about a level follows from that one word, already.
The chapters
Each module ends with you doing what it taught — a written answer Otus reads, and a quiz.
- 01 · Read
What makes a price a level
One definition, one test, and why a level has width.
- 02 · Read
Holding and being respected are different events
Why the level that "held" is often the weaker one — and what a wick through a band means.
- 03 · Study
Find it in this week's study
Open "Which direction paid at a level" and read one of the four rows.
- 04 · Write
Mark one, and justify it
One level, one sentence. Otus reads it.
- 05 · Quiz
Five questions
A wrong answer still pays. It costs the combo, not the XP.
13 terms this module defines
The same definitions Otus uses in the lessons. All of them are in the trading glossary.
- Level
- A price where the market has already visibly reacted. A claim about finished bars, which is what makes it something that can be checked rather than defended.
- Support
- A level below the current price where falling price has previously stalled or turned up. A description of past behaviour, not a floor.
- Resistance
- A level above the current price where rising price has previously stalled or turned down. A description of past behaviour, not a ceiling.
- Band
- A level drawn with width. What the market reacts to is an area a few points deep, because the orders behind a reaction were never at one identical price.
- Test
- One arrival of price at a level, judged from the finished bars. The unit everything about levels is counted in.
- Reaction
- What the bars did on arrival: stalled, rejected, turned or departed sharply. How far and how fast price left is the observable part; motive is not.
- Held versus respected
- Held means the level can still be drawn afterwards. Respected means price left it quickly and by a distance. A level can hold and be ignored in the same arrival.
- Round number
- A price ending in zeros, such as 2300. Orders sometimes cluster there, but a round number only becomes a level if the bars actually reacted at it.
- Stop run
- Price pushing briefly beyond an obvious level, triggering the stop orders resting there, and closing back on the original side. A touch, not a break. Also called a stop hunt.
- Retest
- Price returning to a level it has already closed through, from the other side. A new test, judged by the same evidence as the first.
- Role reversal
- Former support behaving as resistance after a break, or the reverse. Common enough to watch for, not reliable enough to assume.
- Fade
- Treating an arrival at a level as a turn — taking the opposite side of the move that brought price there.
- Breakout
- Treating an arrival at a level as a continuation — price closing through the band and carrying on in the same direction.
Finishing it pays 150 XP and 3 keys on the game board, on top of what each chapter earns. XP measures what you learned — never what you earned. How levels work.
Education only. Nothing here is a recommendation to buy or sell anything; the school teaches reading charts, never predictions.
Start with lesson one.
The first modules, Otus as your tutor and the game board are free. No card needed.