AP2 Week 3: Support and Resistance

Comprehensive vocabulary flashcards covering all 54 core terms across Modules 1 through 5 of AP2 Week 3: Support and Resistance from Faith & Futures University.

Higher chart, lower chart

The higher chart has more time in every candle, so it decides direction and holds structure. The lower chart has less, so it times the entry and never votes on direction.

The pair, the trio

Two ways to set up your charts. The pair is the 1-hour and the 15-minute. The trio adds the 4-hour on top for the bigger trend. Neither is better. Pick one for the week.

Direction

What the higher chart is doing: uptrend, downtrend, or range. A fact read off the swings at your dial setting.

Bias

Your side, in one word, taken from the direction: bullish (longs only), bearish (shorts only), or aside. In a range, the wall, floor or ceiling, that the bigger trend lets you enter at. Written in the corner before the session.

Structure

The swings and the levels built from them, on the higher chart. Where the places are, as opposed to which way the steps are going.

Entry

The moment to act, read on the lower chart: price reaches a level, holds, and gives the trigger. Named and ruled in Module 4.

The bigger trend

The trend on the chart above your direction chart. On the trio, the 4-hour. It outranks the 1-hour and decides which wall you look to for your entry while you are new.

Reference levels

Yesterday's high and low, the overnight high and low, the round numbers near price, and the all-time high if price is near it. Facts, drawn on your higher chart before the open and visible on every chart.

The session-start routine

Reference levels, direction and bias, structure, wait. In that order, every day.

Agreement

The small chart moving inside the big chart's direction. A 15-minute stepping down toward a level in a 1-hour uptrend is agreement, not a fight.

Weight

Which chart wins when they disagree. The 4-hour outranks the 1-hour, the 1-hour outranks the 15-minute. More time in a candle, more weight.

The alert

From Week 2: the lower chart closing through the swing the higher chart's direction was standing on. A major Change of Character, MCHoCH, capital M. The one time the small chart changes the word in the corner, to aside.

Support, resistance

The floor and the ceiling. Support is a price where buying showed up before; resistance is a price where selling showed up. Each one is a memory the market keeps.

The edge

The wall plus the thin band of price in front of it. Where the orders sit, and where you wait.

The middle

The stretch between the edges, where nothing is waiting. Not a place you trade.

Fading

Trading against the move that brought price to a wall: buying the floor after a fall, selling the ceiling after a climb. Only once the wall has held, and never against a strong trend.

The width

How far apart the walls are. Wide, respected walls make a hallway worth trading. Walls a few points apart make chop.

Two homes

In a range, trade the edges. In a trend, buy the pullback to a level the market turned at, with the trend. The direction you named on the higher chart tells you which home you're in.

Reference level

A fact drawn at the open: yesterday's high and low, the overnight high and low, the round numbers near price, and the all-time high if price is near it. Week 2's time and psychology levels, in one basket.

Structure level

A swing the market actually turned at, on your higher chart, at your dial setting. Memory, not a fact. The only kind that can break structure.

Shelf

A level inside the hallway, between the walls, where price paused or turned on its way across. On our chart, 66.4 and 67.4 make one.

A memory of orders

What a level is. The people who bought, missed, or sold there remember it, and when price comes back the memory turns into orders. Your line is a guess at where the memory sits.

Role reversal

A broken floor becoming a ceiling, or a broken ceiling becoming a floor. The memory changes sides. The seed of Week 5.

The flipped-level retest

Price returning to a level that switched jobs and getting turned away. A level to trade this week, like any level that holds.

On the close, not the wick

A wick through a level is a visit. A close through it is a break. Levels are drawn at the swing and judged on the close.

Level strength

Whether a level is worth waiting at. A weight you assign by looking through five lenses, not a rule you run. One word: strong, or weak.

Fresh, spent

Fresh: untested since it formed, or turned at cleanly once or twice and left alone. Spent: chewed through back and forth, or tested over and over. Every test eats the orders waiting there.

Respected

How many times the level has turned price. Twice is proven and still fresh. Once is possible. Many times is spent.

Recent

Made this week, by orders still in the room. A level from months ago was made by people who have moved on.

Clean

The shape of the last reaction. A sharp rejection means real orders. A slow drift through means soft.

Confluence

From Week 2: two or more reasons at one price. A higher-timeframe level, a round number, or a session level on the same line as the swing.

The formula

Step 1: is the level fresh, and was the last reaction sharp? No to either, weak. Step 2: count the yeses on turned twice, made this week, and lines up. Two or more, strong. One or none, weak.

The strength sentence

One sentence per line, the five lenses filled in, ending in the word. "The floor at 58 to 60 is fresh, and the last reaction there was sharp. It has turned price twice, it was made yesterday, and it lines up with yesterday's low and the round number 60. So the word is strong."

The strength sheet

One row per line, five lenses across, one word at the end. Written at the open, in ink.

Weak does not mean erase

A weak level stays on the chart. Price reacts at weak levels, and a weak level can be a target. It is not a place to wait.

In ink

Marked before price arrives, and not re-marked when it does. The opposite of last week's pencil.

Forcing the Trade

From AP1: reaching for one lens to excuse a level you already want. The best levels never need the argument.

The four questions, priced

Level, trigger, invalidation, target, each with a price on it, in order, before you're in. The Read gives the first two. The Trade adds the last two.

mCHoCH, MCHoCH

Small m, the minor Change of Character: the trigger. The pullback into your level makes a higher low and closes above its last lower high (the mirror for a short), on a close. The major Break of Structure comes after and confirms; you don't wait for it. Capital M, the major Change of Character: a close through the swing holding the higher chart's trend, or through the wall of its range, against your bias. The alert from Week 2, not a trigger.

Two rulers

Major or minor measures a swing. Strong or weak weighs a level. They usually agree. Never fuse them into one word.

The stop template

A touch past the far side of the swing holding the trade, plus one candle's cushion on your entry chart. The chart sizes it on any instrument.

Close stop, wick stop

Two schools. Out on a close beyond the stop, more forgiving. Out the moment price wicks beyond it, tighter. Pick one and keep it all week.

Level to level, and the filter

The target is the next opposing level in your direction, and it has to pay at least what you're risking. Closer than your stop means pass. You don't skip a level to make the math work.

The grade

A, B, or C on the whole setup, counting four qualities: bias, level, trigger, reward. All four clean is an A, the A+ in industry language. One soft is a B. Two or more weak is a C, a pass. No A-minus or B-plus. Your A is the one you wrote down in a sentence before the week started.

The freeze

The trigger prints and your hand doesn't move. The One That Got Away, with Loss Aversion underneath. Named here, at the trigger, where it fires.

Where it fails

The bottom bookend of every strategy profile: the level breaks, no clean levels, fighting the trend, acting before rejection. When a trade goes wrong, its own profile tells you why.

Standing Rules

Universal principles, true for everyone, every week, with no numbers. Bias set once and rewritten only when a higher chart changes, no setup no trade, one strategy at a time, honor the stop, judge by adherence, paper first, know what's scheduled.

Setup Rules

This week's card for this week's strategy. The same for everyone so the strategy gets a fair test. Shaped into your own as your log earns it.

Personal limits

Trades a day, losses that end a session, hours you trade. Yours to discover from your log. Start conservative.

The trade card

The Trade Log's shape: three reads, four questions, the grade counted, the result, the rule kept, and the pattern. One per trade or pass.

The pattern column

Freeze, forced, chase, or none. The inner work as data, read back in Week 9.

The Practice Loop

Run The Read, wait, take the setup in sim, log it. Five sessions this week, as many reps as the market gives you.

The Peer Circle

Open all week. Post a chart or a log row if you want eyes on it, and answer others with an eye, not applause.

The wall

Same thing, different name. Row one: support, resistance, floor, ceiling, reference level. Full by Week 8.