The process of drawing support and resistance zones begins with the monthly and weekly charts.

• Support and resistance have been drawn previously on monthly and weekly charts.
• After monthly and weekly, the next time frame to consider is the daily chart.

The daily chart follows the same methodology, using a line chart to identify key zones with at least two touches.

• The transition to the daily time frame involves using a line chart to locate zones.
• A zone is confirmed by identifying at least two touches that validate a support or resistance area.
• More touches beyond the initial two are noted, but the initial touches are critical for zone confirmation.

An examination of price behavior as it interacts with identified support and resistance zones is conducted.

• Switching back to the candlestick chart shows how price struggles to cross these zones.
• When the price does pass through, it transitions between support to resistance or vice versa.
• Price is observed bouncing between zones, with some being broken and others merely tested.

The four-hour chart analysis uses a different approach to identify support and resistance zones.

• The next step is to move to the four-hour chart time frame.
• Support and resistance are drawn differently on this chart, with a change in color to purple for clarity.

Support and resistance zones on the four-hour chart are detailed by looking for zones that alternate between support to resistance.

• On the four-hour chart, zones should have acted as support or resistance previously and then switched roles.
• Japanese candlestick charts are used to identify these zones, not line charts.
• Zones are identified by touches from above and below, confirming their role as support or resistance.

Time frame strength is crucial for understanding the reliability of support and resistance zones.

• Zones drawn on four-hour, daily, weekly, and monthly charts have varying strengths, with monthly being the strongest.
• The strength of a zone is a critical factor in technical analysis and decision-making.
• For example, a monthly support zone would be given more weight than a four-hour support zone in analysis.

The final decision-making process in technical analysis involves considering the strength of support and resistance zones.

• The technical analysis depends on identifying the strength of the zone in question.
• Decisions are based on whether a strong zone is broken or tested by the price.
• Analysis of strong zones helps determine whether to take a long (buy) or short (sell) position based on the expected market direction.