Most retail traders see support and resistance as exact lines. Smart money doesn’t.
Institutions and whales treat these levels as zones of liquidity, not precise prices. When price approaches a well-known support, retail traders place buy orders and tight stop-losses just below it. Smart money uses this liquidity to push price slightly below support, trigger stops, collect orders — and then reverse the move.
The same happens at resistance. Instead of selling exactly at resistance, smart money often lets price break above it, trapping breakout buyers, before selling into their momentum.
Key differences in how smart money trades S&R:
They focus on zones, not single levels
They wait for liquidity grabs, not clean bounces
Fake breakouts matter more than perfect rejections
High volume near levels signals accumulation or distribution
If price reacts too cleanly at a level, be cautious. The real move usually starts after the crowd is trapped.
Trade the reaction, not the line.
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