Strong levels are identified by multiple touches (3+ times), high volume at those levels, longer time periods (months/years), and psychological significance. Combine horizontal levels with trendlines and moving averages for better accuracy. Use volume analysis to confirm institutional activity at these levels.

Support is a price level where buying interest prevents further decline, acting as a floor for prices. Resistance is a price level where selling pressure halts upward movement, acting as a ceiling. After a breakout, previous resistance becomes support, and previous support becomes resistance.

You can trade these levels in three ways: bounce trading (buy support, sell resistance), breakout trading (trade the break of levels with volume), and range trading (trade between established levels). Always use proper risk management with stop losses and position sizing.

Volume confirms the strength of support and resistance levels. High volume at these levels indicates strong institutional interest and makes them more reliable. Low volume breakouts often result in false breakouts. Volume also helps identify accumulation and distribution zones.

Wait for volume confirmation (1.5x average volume), look for retest and hold above/below the level, use multiple timeframes for confirmation, and avoid trading during low liquidity periods. False breakouts are common in sideways markets, so focus on trending markets for better success.