Trends, Support & Resistances, Bounces & Retracements, Consolidations & More…
ByOK guys,
Here’s the video you’ve been patiently waiting for. I would have had this to you sooner, but haven’t been in the best of health and I have been feeling bad not recording it. As a result, today, I’ve managed to record it – forgive the husky voice and coughing.
The video is 46 minutes, but does cover a great deal in that. It covers supports and resistances; how to find them, why to find them, what they mean and so on. Consolidations, bounces, retracements and trends too. Again, what these mean, how and why they work and how to take advantage of them. Also, towards the start, I talk about setting up your software so you’re viewing the same type of chart as I am.
You can watch the video by clicking the link below:
Trends / Supports & Resistances / Bounces & Retraces
Remember to leave your feedback and questions. I need to know what you think, if any of you have any thoughts on what is covered, views or opinions or just simple questions etc. Let me know. I will answer your questions in the comments section on this post. If there’s a common issue, I will look to record a video on it. Further, I need to know what other issues you guys are having for more videos, I will be asking for that feedback later.
Cheer and enjoy
Stu
Hi Stu. I enjoyed the video, it was very interesting. I have been studying from books/youtube and from your website as much as i can on trading. I will be attending a course soon and want to start off on the right footing therefore i am not an experienced trader. I recently read “trading in the zone” by Mark Douglas which is a fantastic read, more on the psychological part of trading. From your experience and knowledge would I be right in saying that most novice traders have a tendency to go long on trades or be looking for the bounce as a default instead of be searching for opportunities to go short as the brain has to think slightly differently? I have a curiosity about this. Shane
Hi Shane
Thanks for the reply.
That’s a very good point. Psychologically, most people tend to prefer trading long and not short. I feel that some of it, is to do with the way we’re programmed. We’re mentally setup, to expect to make profit from something that increases in value and not decreases. Therefore, I feel, that most people tend to ignore or feel uneasy trading short and more comfortable trading long.
Cheers
Stu
Hi Stu,
First of all you shouldn’t apologise for the coughing, I’m sure I’m not the only one who really appreciates you putting out the video in spite of feeling rotten!
I feel fairly confident in identifying support and resistance, trends etc, but I find it hard to put it to use in a real trading sense (I’m not actually trading live yet but I like to study charts and wonder what I WOULD do). For example, in the chart in the video the last candle peaked right on a prior S/R line, so should we go short, expecting a retrace? Or long expecting a continuation to a higher resistance? Or just do nothing and wait and see?
I find myself always going through all these options, then finally reverting to the old adage that price can do ANYTHING, and thus deciding I probably wouldn’t trade it. Which isn’t going to help anything!
Thanks for the hard work!
JTR
Hi Jack
Thanks for the kind words.
I feel that what I would do in that situation, is wait it out. The stock had a substantial bounce, and chances are, it will begin to slow down and consolidate a bit. Considering the ranges are not that wide and the supports and resistances are relatively close, there’s little opportunity for making money from that stock at that current position.
Indecision, or more to the point, fear of trading is common and hard to get over. The best thing to do, is trade only small amounts, get comfortable with the whole process. Don’t expect to see enormous profits, or likewise, massive losses. Keep small, keep the trades simple – for example; make sure that there you are trading a bounce or a retrace that’s pretty much certain – trading off a very strong support or retrace. It may mean that you don’t trade as much as you should and certainly not the point value you should to actually make money. However, it will build your confidence and your ability.
Hope this helps. Feel free to ask any questions.
Stu
hi Stu
hope you’re feeling better. I think this was a great video and its always a good idea to go back over the basics. I suppose my question is there are times I have traded thinking a bounce was to happen and in fact its has broken the support and dropped much further down than expected and and the same for a resistance whereby it has broken on the up side. Or sometimes the bounce has happened way before I got in because there was no doji candle to signal a slow down . what could I do to improve this situation, is it because i could be looking at the wrong kind of charts which have the personlity to be too erratic.
Stu, a good refresher video, thank you. I have watched a couple of times, it points out well the way to identify suport and resistance levels and show how useful they are in predicting what is going to happen in the stock price. I was fairly happy about finding these and their importance but it is always good t recap. Perhaps you could spend a bit more time on moving averages and what the crossover points mean as you skipped over that fairly quickly in this video. Hope you are feeling a lot better and I look forward to the next one.
Thanks Ian.
I have viewed the above video a couple of times and it is most helpful. You
> have covered the subjects very well and fortunately have kept is simple!!
>
> I have a couple of suggestions for possible future videos – Bollenger bands,
> Fibonacci, various channels, wedges, triangles etc.- they may be advanced
> but at some stage would be helpful. They are subjects one hears about but I
> have never seen them explained in simple terms. You will note that I am a
> great believer in “a childs guide to ______”.
hi stu
having watched your video several times I would like to understand more about indicators and how they complement what you are analysing. your video was simple and easy to understand and having watched your interesting charts over the last few years, there isnt much said about indicators, so I havent paid much attention to them.