Many traders start to "trade by watching the lines" after learning to draw support and resistance lines.

As soon as the price touches support, they go long; when it touches resistance, they go short.

But the results often go contrary to expectations—either they get slapped in the face right away, or the rebound is weak, and the trend drags on, missing the rhythm.

So where is the problem? The core logic can be summed up in one sentence:

Price should not be traded just because it reached a key point, but rather it is essential to observe—how it arrived at this position.

1. The essence of support and resistance: it is a position, and also an examination ground.

We can understand key support and resistance levels as:

A concentration of market sentiment: bulls and bears have fought fiercely here.

It is also a behavioral test: when the price reaches here, how will the market react?

Therefore, the focus of trading is not the position itself, but rather:

When the price arrives at this position, how did the market "come" and how will it "go"?

2. Observing how the price arrives: the starting point for judging trade quality.

The way the price reaches support/resistance determines the quality of the subsequent trend.

We can evaluate whether this touch is worth acting on from the following three perspectives:

Typical characteristics of strong signals (suitable for trading):

1. Clear structure: the price approaches the key level in a clear trend, rhythmically;

2. Dominant candlestick: when near the key level, a strong long candlestick (up or down) appears;

3. Smooth fluctuations: the volatility is smooth, with a sense of space, and the trend is clean and crisp.

Typical characteristics of weak signals (should be avoided):

1. Chaotic rhythm: up and down spikes, back and forth oscillation, no clear direction;

2. Narrow fluctuations: candlesticks are densely packed with no sense of energy;

3. Frequent false breakouts: sometimes breaking out, sometimes breaking down, hard to tell true from false.

In summary with a common saying:

It’s a pity not to act on strong signals, but it’s sad to act on weak signals.

3. Diagram: 8 types of price touching key levels.

4. Trading relies on logic, not on luck.

Many people rush to trade as soon as they see support and resistance, resulting in either being reversed or harvested by false breakouts.

Truly mature traders rely on observation, waiting, and judgment. They understand:

Not every time the price touches a line is worth trading; one must wait for the price to touch the line in the correct way.

Remember this saying as a gift to you:

Act strong, don’t act weak; if you act weak, sleep in a bridge hole.