Thread by @RamsayRippers

🚨SUPPORT & RESISTANCE THREAD🚨

Let's discuss how you can use support and resistance levels in your TA to get the best entries and exits while using @unusual_whales flow for confirmation.

(1/11) Support and resistance levels are formed when a stock repeatedly touches a price and is unable to break that price. When this occurs to the downside we call that a support level. When it occurs to the upside, we call that a resistance level.

(2/11) Support and resistance levels gain validity the more times a stock touches the level without breaking it. If you pull up a daily chart for any stock you should be able to draw horizontal lines where you can see critical levels that are being respected by traders.

(3/11) The two pictures below are examples of support and resistance levels.

(4/11) Occasionally a level will break briey and then prices will quickly reverse. This is called a false breakout. Day traders have to be very cautious of false breakouts because we are often taking positions before the breakout has been confirmed.

(5/11) If we wait to take our position until we have confirmation, the breakout has already happened and we'll miss a lot of profit potential. For that reason, learning to anticipate breakouts and recognizing signs of a false breakout will be an important skill for any trader.

(6/11) Additionally, by understanding support and resistance levels, we can develop a long or short bias on each of the stocks on our morning watch list. This will help determine the potential of the trades and the type of setups you will be looking for.

(7/11) A good example of using support/resistance as confirmation for a trade would be this graphic right here.
I used intraday support and previous resistance as a guide to scale in and out of this trade.

(8/11) On top of that, using @unusual_whales to see bearish flow further solidified this idea. As you can see here intraday flow showed lots of sales on calls indicated profit-taking. I highlighted the large premium sizes as well that UW offers on this specific page.

(9/11) I like to set my filter on Unusual Whales to a minimum premium of $20,000 on a stock like $QCOM. You can do that by clicking the filter page and sorting it as you like.

(10/11) Furthermore, the Intraday Analyst showed bearish volume and premium which you can find to the left of the flow page.

(11/11) Practicing discipline will condition the mind to become accustomed to feeling discomfort. Rather than taking steps to alleviate the feeling, we can train ourselves to withstand it. Patience & Discipline are the names of the game! Trust in your TA and stick to the script!