Most people immediately look for the obvious highs and lows on a chart. Those levels certainly matter, but they're often only part of the story.
If you learn to look a little deeper, you'll start seeing areas on a chart that many traders simply skip over.
Looking Beyond the Obvious
During a recent Ticker Request Live broadcast, I was looking at MU (April 14 2026). As we were looking at the Micron chart, you could probably identify the next upside target just by finding the prior high from March 18. That was a perfectly reasonable place to begin.
But the price bar that made that high had other important components to it.
The high was important, but so was the low of that same price bar.
Why?
Because that low represented an area where buyers had stepped in. Some of those traders may still have been holding their positions. Others may have missed their opportunity and were waiting for the price to come back. Those participants could have influenced how price reacted when it revisited that area.
So instead of thinking about a single support or resistance line on your chart, start thinking about the entire range that created an important turning point.
Don't Ignore the Midpoint
There's another level inside that range that I pay close attention to.
Halfway between the high and the low often becomes an important area of agreement between buyers and sellers.
One of the easiest ways I identify that midpoint is by adjusting my Fibonacci tool so it only displays the 0%, 50%, and 100% levels.
I'm not using Fibonacci ratios in the traditional sense here. I'm simply using the tool because it quickly shows me three levels I care about:
- The low of the range
- The midpoint
- The high of the range
That's often much faster than trying to calculate it manually.
Why These Levels Matter
Every candlestick tells a story.
When a stock reaches an important high, traders naturally remember where that move began, where it finished, and where price spent time in the middle of the move. Those areas can become meaningful reference points as the market moves forward.
Sometimes you'll see a stock hesitate at the old high.
Sometimes it'll react near the old low.
Other times, the midpoint becomes the level where buyers and sellers once again begin to agree on value.
That's why I don't limit my analysis to only the extremes.
Become a Better Observer
One of the biggest improvements you can make as a trader is learning to observe more of what the chart is showing you.
It doesn't require another indicator or a more complicated trading system.
It comes from asking better questions about the price action that's already in front of you.
Instead of marking every swing high and every swing low, study the entire range that created an important move.
Look at the high, the low and the midpoint.
Then watch how price behaves as it returns to those areas.
The next time you're reviewing one of your charts, see if those levels begin standing out in places you hadn't noticed before. You may find that some support and resistance levels carry more weight than others, and that can help you become a more thoughtful observer of market behavior.
👉 PS — Four Zones Get It Done Weekend Starts Friday!
If you're a Four Zones RSI Coverage System student, I'll be working right alongside you this weekend. Here's what's on deck:
📅 Friday, June 26 → Get Ready Meeting | 12:00PM ET
📅 Saturday, June 27 → Four Zones RSI Get It Done Meeting #1 | 11:00AM ET
📅 Sunday, June 28 → Four Zones RSI Get It Done Meeting #2 | 11:00AM ET
Visit himareddy.com/events for full details and registration.
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