## Marking levels on the chart
The indicator itself highlights all significant levels, while eliminating human subjectivity and even showing the strength of a level, helping you quickly understand which zones are key for the price.
* **Green levels** - are support that prevents the price from falling down
* **Red levels** - are resistance that prevents the price from rising above
* Weak levels are zones where the price reversed only once; they do not always work out
* Strong levels are zones where the price was held and reversed 2 times or more; they act as key support and resistance
{% hint style="info" %}
You can set up [an automatic alert](/faq-en/alert-setup.md) for bounces off levels and receive a notification in TradingView or Telegram, fully automating your analysis!
{% endhint %}
{% tabs %}
{% tab title="Strong support" %}
Using the daily Bitcoin chart as an example — you can see how a strong support level holds the price many times, preventing it from falling lower + each time the price makes a good bounce when it reaches this level.
Knowing this level, one could several times timely take profit on short positions and accumulate long positions.
{% endtab %}
{% tab title="Weak support" %}
In the example we see weak support — this is when a price movement formed a level, but it has not yet been confirmed by a repeated bounce and therefore is considered "weak."
Here the price decline often slows, there may be a bounce, but the chances of a reversal are lower than for a strong support level.
{% endtab %}
{% tab title="Strong resistance" %}
Using the daily Ether chart over the last 4 years as an example — you can see how a strong resistance level holds the price for several years and breaks the uptrend into a downtrend when the price reaches this resistance.
Knowing this level, one could several times timely take profit on long positions and open short trades.
{% endtab %}
{% tab title="Weak resistance" %}
In the example we see weak resistance — this is when a price movement formed a level, but it has not yet been confirmed by a repeated bounce and therefore is considered "weak."
Here the price rise often slows, there may be a bounce, but the chances of a reversal are lower than for a strong resistance level.
{% endtab %}
{% endtabs %}
## Application of levels in trading
Price always moves from level to level. Correct identification of levels will help you see important zones in the market and find the best entry and profit-taking points:
* When the price approaches a level, you need to see where it will settle — if above, the scenario is bullish; if below, the scenario is short/bearish
* It's better to open positions from strong levels, but not "into the level"
* You should also take profit when the price approaches a strong level
Trading on levels is one of the most popular strategies in trading, which is ideal even for beginner traders, thanks to clear entry points, stops, and targets:
* Bounce trading - in a weak trend or range, find the strongest levels that will cause a reaction, wait for the bounce to begin, and open in the direction of the bounce
* Breakout trading - in a strong trend, wait for the level to be broken, and on its retest (return to the broken level and bounce) open a trade in the direction of the breakout
{% hint style="success" %}
First of all, try the simplest [trading strategy with levels](/faq-en/simple-strategies.md#strategiya-torgovlya-ot-urovnei) from the indicator developer
{% endhint %}
{% tabs %}
{% tab title="Bounces to the long side" %}
On the daily TON chart example — we see how powerfully the strong level produced bounces without any additional factors.
{% endtab %}
{% tab title="Bounces to the short side" %}
In this same daily TON example we see that all this time there was a resistance level, and when reached the price not only bounced but also reversed and went back toward the support level.
{% endtab %}
{% endtabs %}
---
# Agent Instructions: Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter:
```
GET https://faq.midas-club.com/faq-en/faq-midas-up/support-and-resistance-levels.md?ask=
```
The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.