Support and Resistance Across Timeframes

Part I established that boxes nest and that the outer box rules. Part II is about what you can measure inside a box. It begins with the oldest idea in technical analysis — support and resistance — and shows what the box model does to it.

Most traders learn support and resistance as a drawing exercise. Find a price where the market turned, draw a horizontal line, wait for price to come back to it. It works often enough to keep people doing it and fails often enough to keep them frustrated, and the frustration comes from a question the drawing exercise never answers: which lines matter?

The box model answers it. The lines that matter most are the ones from the largest box, and the reason is the same reason the outer box rules.