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Technical Analysis: Support and Resistance on Stock Charts

868 ratings | 88734 views
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
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Text Comments (66)
Jose Garcia (21 days ago)
I really like to visit your videos from time to time because it just refreshes and gives me a better perspective when trading...I appreciate you,,very much
Luis marcos (29 days ago)
Great info, I see you hitting 200k subscribers real soon
Jorrellfitness (2 months ago)
Dude your a great teacher! I'm learning so much in just 2 days watching your videos. Your awesome.
Arpit Chhabra (1 month ago)
Thanks man, I watched few videos of urs but I really loved dis one. Subscribed ur channel 4 dis video.
Excellent! Thank you so much for watching and I'm glad you find the videos helpful
paras patidar (3 months ago)
great video, thanks a lot ,it clears my concept about support and resistance
j kelz (4 months ago)
good explanation but bro ... you are boring as hell.
Michael Agda (6 months ago)
very well explained....
Jitendrasing Solanki (6 months ago)
Very nice,
akhkj bkjlkj (8 months ago)
Thank you great Video!!
hidden leaf (8 months ago)
Your explanation is great
i hit like button to your video. Nice information bro.
colleen alderliesten (9 months ago)
I have been trading by myself for a few years and realize ? I need someone like you who can explain things in easy to understand way... new subscriber here,
ashok kokare (9 months ago)
Nice video
Fahad K (10 months ago)
You are so good. Thank you
Best teacher so far.
LoveResidentEvil4 (1 year ago)
dude youre so helpful
Benji Bitcoin (1 year ago)
Fantastic content. Very easy to digest and build more information upon. Thx mate
שני עופר (1 year ago)
you made it very easy to understand. thanks a lot for the video!
DS Pawar (1 year ago)
Nicely explained👍
JD Williams (1 year ago)
Sasha I'm studying to start in trading and I find your videos amongst the most helpful on the internet. This one in particular made the light bulb go off in my head concerning the psychology of the movement of stocks. Thanks a million!
Abdurazzoq Dadashev (1 year ago)
if the stock is easy like u explaining I could become very important person with a help of you Mr Sasha
Jonathan McBrine (1 year ago)
I create algorithms for fun, do you have any good strategies in writing, or recommend resources.
Casey Lockhart (1 year ago)
how much support do you feel CHGG has right now??
Mcleone Fontelo (1 year ago)
Sasha you've been here since 2012? Wow! Thank you for your videos. I want to be as good as you someday.
Rajat Khitoliya (1 year ago)
Subscribed !
Thank you so much Sasha! I really love to watch your videos, coz you have clean and clear explanations...
Fernando Guzman (1 year ago)
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?
Marwan M (1 year ago)
Good Job!. Do you have a video explaining ATR? thanks!
Jeremiah Apple (1 year ago)
The videos are so much more informative with visuals. Thanks!
stickyman12 (2 years ago)
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
cl (2 years ago)
Can this be applied to forex trading?
cl (2 years ago)
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.
Azfar Raza (1 year ago)
Sasha Evdakov maybe a dumb question but whats the difference between elevated support and resistance and trend lines?
Piglatinsuperstar (2 years ago)
good video
Piglatinsuperstar (2 years ago)
you're welcome
Stefano Piazzese (2 years ago)
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?
After a stock breaks resistance, how far above that should I wait to buy?
ThRippJck (3 years ago)
Thank you for the info, I'm actually looking to day trade in half a year or so and this was very helpful
Joe Player (3 years ago)
Wright a book on the psychology of patterms and send me a copy.
Trang Phung (3 years ago)
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.
dananshen (3 years ago)
so do you think the stock 00006 power assets holdings 00006 just passed the last resistance line and is now worth  investing?
dananshen (3 years ago)
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?
iamKythus (3 years ago)
what % difference would you say points on a support line can be?
Slav D (3 years ago)
Thank you so much for all your videos! I find them really helpful and clear! You are a great teacher!
gp5 (3 years ago)
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.
gp5 (3 years ago)
+Sasha Evdakov Thanks for answering, great videos Sasha.
John Pelaez (3 years ago)
Perfect Sasha. I've learned a lot from you. I am thankful for your willingness to share your knowledge.
shizukashiawase (3 years ago)
Sub'd, thank you Sasha for the tutorials! :)
Lance Alvarez (3 years ago)
Thanks for the video it was very helpful
KE Shawn (3 years ago)
Good I like it
Aman Ami (3 years ago)
Thank You.. Sasha for this understandable presentation this 'll  help me in my up coming exam :))
cherukuri sai tharun (3 years ago)
this video deserves more likes
cherukuri sai tharun (3 years ago)
thank you sasha very useful tutorial
rajesh Anandakrishnan (3 years ago)
Thank you  Sasha.  Very good tutorial and good job.  I have subscribed.
Asha Damani (3 years ago)
Very easy and simple to understand, thanks :)
hamudi sadek (4 years ago)
Oh my God im so happy for this video..thank you thank you..
DxBOY15 (4 years ago)
You've earned a new subscriber
David Aw (4 years ago)
Hey can you advise me. How you use to capture this tutorial? I meant Camstasia or Screenflow? Very clean.
Chinthaka Fernando (4 years ago)
good job
Evelyn Yin (4 years ago)
fabulous!
kalle kanin (4 years ago)
thank you very helpful and easy to understand
Ashton Ball (4 years ago)
Let's say a trend breaks the resistance level which in turn changes to support... Is there a theoretical percentage above the new support line a trader can use to predict where the new resistance level would be? 
Raymond Tan (4 years ago)
thx so much
Ganesan Suresh (5 years ago)
nice one..
dazedbitai (5 years ago)
Wish I came across your videos before I began trading. Great material and clear, easy-to-understand presentation.

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