1.Support and Resistance Basics: Support levels are where prices tend to stop falling, while resistance levels are where prices pause before moving higher. Identify these key levels on your chart.
2.Drawing Support and Resistance Lines: Connect at least two to three higher highs in an uptrend (resistance) and two to three lower highs and lows in a downtrend (support).
3.Angular Momentum: Imagine drawing trendlines like those “Magic Eye” pictures. Adjust your eyes to see the picture. Look for touches of support and resistance.
4.Price Action Bounces: Observe how price action interacts with moving average lines. Bounces off these lines can confirm support or resistance levels.
4.Buy Low, Sell High: When going long, buy at support levels. When going short, sell at resistance levels.
5.$AAPL Example: Check out the daily chart of $AAPL. Notice the uptrend, three touches of support, and three touches of resistance.
6.Practice Makes Perfect: Study hundreds of charts over several months to refine your skills in drawing support and resistance.
7.Clean Charts: Remove distractions from your charts—focus solely on price action.
8.Patterns Matter: Candlestick patterns often form around support and resistance levels. Pay attention to these formations.
9.Precise Entry: Combine support/resistance levels with other technical indicators (e.g., moving averages) for precise entry points.
:Remember, practice and observation are essential. Happy trading! 📈🚀
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