Thread by @RamsayRippers

🧵🚨Key Levels thread

One of the most pivotal components of my trading is mapping out key levels of support and resistance prior to each trading session.

Let's get right into it.

(1/13) A quick disclaimer... the beginning of this thread is conceptually beginner level and will get more advanced as we go on.

(2/13) The big picture of my trading style along with many, if not most others, is identifying key levels of support and resistance. Whether it be:

Macro/Micro
Premarket
Intraday
Previous day High/Low Open/Close
5m/30m/hourly/daily time frame

(3/13) Support and Resistance

S/R levels are formed when a stock continuously touches a price and is unable to break it.

Support: When this occurs to the downside
Resistance: When this occurs to the upside

(4/13) Here's a $DIS daily chart from January of this year with support (168.60) and resistance (187.80) mapped out.
If you pull up a daily chart for any stock you should be able to draw horizontal lines where you can see key levels being respected.

(5/13) Here's another screenshot where we can see how these levels were formed.

(6/13) I am looking to see and anticipate violent moves with respect to price action off of these levels. As you can see in the previous picture once we broke through the 168 support level,e stock made a violent move to the downside finally getting a bounce at 141.

(7/13) My personal favorite time frames to chart my key levels is the 30m and hourly time frame.

I tend to see that the longer the time frame the more validity the level has and it also just works best for me.

(8/13) What am I looking for?

I want to see previous support turn to new resistance and previous resistance to turn to new support.

What exactly do I mean by that?

(9/13) This is an $AMD 30m chart from a few weeks ago. March 21st resistance was charted and confirmed of rejections on the 22nd and 23rd as seen below. Once we ripped through this resistance level I am looking to see it act as new support which would further validate the level.

(10/13) Here's another example of previous resistance turning to new support. Once a previous resistance/support level is broken, I will look for a bounce/rejection off that level.
$NVDA March 22nd 272.40 resistance --> to new support on the 25th after breaking through the level

(11/13) 4 levels I chart every day before the trading session:

Premarket High
Premarket Low
Yesterdays High
Yesterdays Low

(12/13) $QQQ 5m chart from last week - April 7th LOD = 348.69. April 8th LOD = 358.62.
On April 8th after gapping down and knifing at open $QQQ found support 7 cents off of the previous day's low.
I tend to see bounces/rejections off of the previous day's high and lows.

(13/13) Later this week I will get into the more advanced side of charting levels on different time frames with respect to candle wicks & bodies. Tonight was an overview introduction of what I like to do. I hope you enjoyed, lmk what you think, & stay tuned for the next one.👀

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