Education Lesson 30
Supports And Resistances
In this chapter, I will show you how to draw supports and resistances. drawing 2 lines is very simple really. Take AAPL chart. The green line is support, the yellow line is resistance. I drew this based in a 2 point reference. 3 point reference is best. You can assume that the price will bounce off the green line and go up and/or reject off the yellow resistance and go down. if it breaks through those lines I drew, then a new direction is being established and you'll need to see where it goes. You an ue this strategy to enter and exit positions. grin
Please refer to this video on the basics of drawing supports and resistances.
Here is an example of a support and resistance