Technical Analysis: Support and Resistance on Stock Charts

Support and Resistance are the building blocks needed in order to read chart patterns properly and to trade effectively. Support: -A psychological level where people believe the demand is strong enough to hold the stock price up -This is similar to a price floor, but it isn't government controlled -A healthy support line hits multiple points at the same level Resistance: -It is the opposite of support -A psychological level where the sellers are putting the stock down -When a stock hits the resistance line, buyers no longer want it because the price is too high, and sellers step in -The more times a stock hits the resistance line, the stronger it is becoming Support and Resistance are the Same: -Support is actually resistance and vice versa -They both equal one another -i.e. once the stock breaks through the resistance level, the resistance line becomes the support line -Resistance lines continue to become support lines as the stock continues to go up -The same is true on the downward level; support lines become resistance lines as the stock goes down -The more trading that is done in a certain level, the stronger that level becomes Additional Notes: -Support and resistance do not have to be horizontal -They can be elevated at different angles and still be support and resistance lines -If the support or resistance is broken that means the perception of the stock has changed -When stocks tank, people are selling their shares and they want less of that stock -If stocks have a lot of resistance and break through the resistance line, there is a high demand for the stock (new product, positive news, etc) ★ SUBSCRIBE TO MY YOUTUBE: ★ http://bit.ly/addtradersfly ★ ABOUT TRADERSFLY ★ TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing. Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better. Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us! STOCK TRADING COURSES: -- http://tradersfly.com/courses/ STOCK TRADING BOOKS: -- http://tradersfly.com/books/ WEBSITES: -- http://rise2learn.com -- http://criticalcharts.com -- http://investinghelpdesk.com -- http://tradersfly.com -- http://backstageincome.com -- http://sashaevdakov.com SOCIAL MEDIA: -- http://twitter.com/criticalcharts/ -- http://facebook.com/criticalcharts/ MY YOUTUBE CHANNELS: -- TradersFly: http://bit.ly/tradersfly -- BackstageIncome: http://bit.ly/backstageincome

Comments

1. Sasha you've been here since 2012? Wow! Thank you for your videos. I want to be as good as you someday.
2. Thank you so much Sasha! I really love to watch your videos, coz you have clean and clear explanations...
3. Great video. I have a question though..when you buy shares do you have to sell them all or only a few the same day. And when do you close position?
4. Good Job!. Do you have a video explaining ATR? thanks!
5. The videos are so much more informative with visuals. Thanks!
6. Say I draw a line at the most recent top/bottom so a major reversal Im guessing l would have to wait for a second bounce off that area to be considered a valid s/r area and not just like a touch and actually bounce correct me if I'm wrong thank you
7. Can this be applied to forex trading?
8. Sorry, you didn't really explain why support lines can sometimes be elevated and not just horizontal, so I got kinda lost there. That makes it kinda confusing.
9. good video
10. Well done on the very clear explanations, love your videos :) Quick question, should I look for higher volume when the line is broken as an extra confirmation?
11. that would be an ascending triangle meaning the price will drop
12. Hello sir, nice vid! I have a question: FROM what time TILL what time range will this all apply? Thank you in advance!
13. Thank you for the info, I'm actually looking to day trade in half a year or so and this was very helpful
14. Wright a book on the psychology of patterms and send me a copy.
15. Sasha , you are so young , but your teaching is very good. I am old and want to learn investingf or the first time.  What materials should I buy for a  beginner. I know nothing about trading but like to learn. I also have no skill in computer ,too. What sofware should I buy that very easy to understand.
16. so do you think the stock 00006 power assets holdings 00006 just passed the last resistance line and is now worth  investing?
17. so the more times the line hit the resistance line, if it then passes that line, the less likely it is to fall down again?
18. what % difference would you say points on a support line can be?
19. Thank you so much for all your videos! I find them really helpful and clear! You are a great teacher!
20. Ok let me get this straight, this is something I never understood about technical analysis, you're supposed to draw lines on your charts and base part of your trading on that?
    I apologize for the dumb question, just that want to learn technical analysis and I'm a bit confused when people present old charts as examples.