Levels◐ Heuristic
◆ The PatternThe floor and ceiling of price — where memory lives
Support is a price level where buying concentrates (floor). Resistance is where selling concentrates (ceiling). These levels have "memory" — broken support becomes resistance, and broken resistance becomes support. This polarity principle is fundamental to all chart reading.
More touches = stronger level · Broken support → resistance (and vice versa)
S&R levels are zones, not exact prices — think of them as areas where orders cluster, not precise lines.
// Support & Resistance — price memory
Key insight: Round numbers ($50, $100) and previous highs/lows create natural S&R levels because traders and algorithms place orders there.
Pattern bridge: Price memory at specific levels is anchoring bias made visible. In ML, activation clamping (ReLU at 0, sigmoid at 0/1) creates the same floor and ceiling.