Engineering Alpha

Engineering Alpha

How Can We Prove Support and Resistance Levels Actually Work?

A practical guide to testing whether levels add value or are just pretty lines on a chart

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Jul 14, 2026
∙ Paid

Support and resistance are everywhere in trading.

Open any charting platform and you will find lines, zones, boxes, trendlines, pivot levels, moving averages, Fibonacci levels, previous highs, previous lows, round numbers, volume zones, supply zones, demand zones, and probably three indicators created by someone named “AlphaWolf_Trader_777.”

The problem i…

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