Thread by @HappyGTrades

🔥INFORMATIONAL THREAD🔥

CRITICAL to my style + always useful!
‼️📝‼️

lots of my plays deal with resistance/support breaks

-what happens after that is what is most critical for my style, this is how i choose my triggers

-when a stock breaks a resistance it’ll basically either

1) just moon and form a big green candle followed by another

2) it’ll form a red candle right after...seeing if the previous resistance now holds as a support

in #2, if the previous res. successfully holds as a new support, the stock should take a leg up

if it doesn’t hold as a new support, then it is a fakeout

in #1, and a successful support hold of #2, both are safe to hold long

if it fails to hold in #2, gotta cut

the same is true for the opposite way when going short...also true for most time frames

for short/puts: when support cracks it’ll

1) form another red candle and continue down

2) form a green candle and try to reclaim that support level

if it fails to reclaims the level...hold the short for a bigger move

if it does reclaim that level fakeout, gotta cut for loss

💥💥💥i attached photos mapping out the exact situations, in different time frames and scenarios!!💥💥💥

#stocks #stonks #stockmarket #options #education