In trading you hear a lot about support, resistance, and technical analysis.
If you’re new, it can be very confusing.
You’re trying to pick out these levels on the chart but maybe you don’t quite understand which levels are most important or where to set your stops…
That can lead to failed trades if you enter or exit at the wrong point.
You want to cut out those unnecessary losses and study charts til your eyes bleed. But I can help speed up the process…
I have a technical analysis tool that could change your trading game.
See how I use it, and how it can help you spot key support and resistance levels for entries and exits…
Demystifying Support and Resistance: Your Secret Weapon
First, let’s break down some of the most important support and resistance levels…
The chart for each stock will show you important levels.
Look at the daily chart to find levels the stock has bounced from in the past, and where it struggles to go higher…
AAPL chart: 1-year, daily candle — courtesy of StocksToTrade.com
Understanding Support and Resistance Levels
So you can see the support and resistance levels I put on the Apple Inc. (NASDAQ: AAPL) chart above.
As a stock falls, it often finds support at previous levels of support. And as it rises, it often fails at previous levels of resistance.
Once a stock breaks through a key resistance area, that level often becomes support and vice versa…
When a stock falls through support, that level often becomes resistance when it tries to bounce.
These support and resistance levels can be great entries and exits to plan your trades around.
Whether you like to dip buy at support and sell into resistance … Or buy breakouts through resistance with a three-to-one risk/reward…
Technical analysis is a fundamental skill all trades need.
It can take a lot of time to learn. And it’s why I tell traders to study charts til their eyes bleed…
But some tools and technology can do some of the work for you.
For example, StocksToTrade has a proprietary algorithm that plots support and resistance levels on the chart for you.
It even color codes them so you know levels of heavy resistance, and pivot points where a stock could reverse direction.
So if you don’t know where there’s resistance or support, where to stop out, or where to take profits — our Oracle support and resistance indicator can help.
Look at all the levels it shows as support and resistance on the same AAPL chart I shared above…
AAPL chart: 1-year, daily candle — courtesy of StocksToTrade.com
Oracle is a tool that you can only get on StocksToTrade.
It can save you mountains of time when preparing trading plans. And it can give you plenty of information about a stock’s history, just with one glance at the levels.
It was developed with input from myself, Tim Sykes, and many other successful traders. Then our engineers turned it into a tool to help guide you through support and resistance.
If you have StocksToTrade, you can find the Oracle support and resistance indicator under your technical indicators tab drop-down list.
If you don’t have StocksToTrade, click the link below, get the trial, and check it out.
Try StocksToTrade for 14 days NOW!
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade