Charting for Beginners? Support-Resistance

How to Trade Stocks using Charts - Support and Resistance

Actually, support and resistance levels are not just for beginners to stock trading. Many professional stock traders time their shares buying and selling on nothing more complicated than support and resistance levels.

Take a look at this excellent video by 'old school chartist' for a detailed explanation on what support and resistance levels and why they work.

Basically stock charts are not just random lines on a screen, they work as a trading strategy because they reflect the behavior of crowds. When traders expect something to happen, they make it happen by behaving in a certain way and so the charts become self-fulfilling prophecies.

For more information on support and resistance check out this earlier post - how to trade stocks - one easy strategy

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