Direct Rules to draw perfect Support and Resistance levels

What are the most important concepts when it comes to forecast any financial market (Forex, stocks, futures, etc)? I think support and resistance levels, some traders might disagree with me, but the information we could get from these levels could actually help us trade with better results.

There are three things the market could do after hitting a support or resistance level:

1. Retrace
2. Change direction
3. Stall

Knowing what the market is likely to do after reaching one of these levels, we could adapt our strategy to trade based on that information: on what the market is likely to do. Therefore, we need to know how to draw support and resistance levels and be prepared to make the necessary changes to our strategy:  move your stop loss levels, close your trade, add to your trade, etc.

But first things first, what are these support and resistance levels:

Support level: Is a level in which the market has been rejected at least twice and it is keeping the market from reaching lower levels.

Resistance level: is a level in which the market has been rejected at least twice and it is keeping the market from reaching higher levels.