Support and Resistance Was Hard, Until I Found This Secret!

have you ever woke up in the morning sat at your trading desk and thought oh here we go again while this is most likely due to the fact that your trading chart looks like this and your stock trading account looks like this oh my God in this video I want to help you change that by showing you how I draw my support and resistance levels and how I keep my chart extremely clean while I'm trading intraday so if this is something you're interested in make sure you watch the whole video through make sure to leave a like on this video if it helps you and let's get right into it so when I'm looking to draw support and resistance levels I'm looking at a couple different things the first thing we're going to be looking at is the higher time frame on The Daily time frame you want to understand what is exactly happening on the chart this is crucial to understand how to draw support and resistance because we can understand the bias on the higher time frame which will help us intradays trade the stock so in Tesla for example here we're on the daily chart on the daily chart what I notice is we have a key level of support on this Hammer candle that formed on Tuesday March 28th okay this Hammer candle form and it showed a strong level of support at 185 60s with previous resistance here as we can see on these three candles not being able to break and when we did we had a very strong break showing that there was buyers and sellers present here right and when you're understanding price action you understand that sellers were present here buyers finally took the price of Tesla and they brought it above that key level at 185 60 showing that buyers are in control and when we retraced and had a pullback on Tesla at 185. 60 we showed that buyers are once again present forming a strong price action candle with that hammer Candle on the 28th of March okay so that is the first thing that I notice on the daily chart we can Mark these levels off as well with colors to understand when we're actually trading intraday what these levels mean too many people have too much noise on the chart and that is something you don't want when you have too much noise on the chart it's going to mitigate the effectiveness of your key levels and you will get analysis paralysis with analysis paralysis means is you won't understand exactly why you're taking that trade you just are taking it off the key level but you don't understand the key level you're taking it off of too many people's charts look like this this is so much noise too many indicators too many key levels and you really don't want your chart to look like this you want your chart to be clean precise and actually understand why you have your key levels and the thesis behind each trade that you take so back to our example here we have our low for the day on The Daily time frame and then we also have our high here with this High we understand that if Tesla breaks Above This 200 level we have a strong push to the upside on The Daily time frame what I'm also looking at is the actual Candlestick that is forming if you haven't watched my Candlestick video and how to read price action that's very important for this video with this level here right look at these daily time frame we see that we actually broke above a previous trend line right here right we broke Above This previous trend line and now on The Daily time frame rate we didn't actually get a strong break but we're consolidating above that previous trend line showing that we are looking at bullish momentum so understanding this on the daily time frame and seeing that we did form a doji candle we're going to go over to the four hour time frame now on the four hour time frame what do we see it's the same thing on the daily but we see it a little bit more precise here we see that resistance here that we held below from March 14th all the way to March 21st and we were holding this resistance very very strong when we broke above we got a big push above that resistance and then a strong pullback look at this four hour candle that formed on this pullback on the daily and on the four hour we got very strong examples of a hammer candle and when we did have this pullback we had buyers enter in and then push the stock back up above this trend line and now our key level here 270 is what we're looking to break when we do open up into the market now here what would I draw on the four hour what I would draw here is just a key level of support that I noticed that the market has enclosed below okay so as we can see the candlesticks have not closed below this four hour level at 188 77s and 185 79s now one thing you guys can also notice here is we can also use this sort of like supply and demand right we can see that this is a strong level of demand that we came back to right we see the supply and it turned into demand here okay now what do we want to look for when we do see the open we want to have profit targets into the day what I see is this 270 profit Target but then I also see this this level of resistance that turns support that actually failed at 205. 14 and finally if we could right this is the previous pivot High which is at 2 12 67s but for this specific day right this was a really big move for Tesla and I don't think we will get to that two 1267 level however that is a level that we could have for our potential trailers if we do get a really really strong day on Tesla okay now let's go down to an even lower time frame now we're on the one hour time frame on the one hour time frame we still don't see too much on Tesla rate we just really seek a consolidation after we broke out of that trend line which is fine right we're just going to keep lowering time frames to understand exactly what is happening on Tesla on the 10 minute time frame this is a really good example now on the 10 minute what do we see we see highs and lows right we see consolidation on Tesla right this is the high that it made and this is the low that Tesla made within this high and low what do you guys see right it's just chop okay we just see chop there is no real price action what most Traders will do and what why most Traders don't have good trades in a low win rate percentage is because they actually draw so many different trend lines like I explained and they have analysis paralysis you do not want to draw your trend lines on every single little Pivot Point right you don't want to draw it on this pivot point for example you don't want to draw it on this pivot point that that's too many pivot Points on Tesla right we only want pivot Points that are really crucial for the Stock's actual bias and thesis for our trades okay now on the five minute time frame we can drop a little bit more and we still see the same picture right just consolidation on Tesla now the only thing that I would draw still is when we do right before we open up I want to look at the pre-market high and pre-market low levels okay that is what I want to draw we have our daily highs and our daily lows but the final levels that I would draw is the pre-market high and pre-market low levels so for our pre-market high level here at 197.

33 which is fine right because this is actually the previous pivot Day level as well and then we have our previous day low at 194. 45 but our pre-market low comes in here at that 195 18 level now we want to hop onto the one minute time frame to actually look at how this trade worked out now the reason we're on the one minute time frame is because I trade on the one minute time frame and this is exactly how my charts usually look right into open what we see here is I have sticks trend lines in total drawn on Tesla okay going into the market we have six total horizontal trend lines and then and then one diagonal trend line on Tesla see how simple my chart lucky how clean it looks that is the main thing right I know exactly what I'm looking at on Tesla I know what I'm looking out for I'm looking for a long position and right now these are all the trend lines that I need when we actually do play out this chart we'll see that if we do need to draw trend lines or even horizontal levels we'll do it as the chart progresses okay but going into open it we know that if it breaks pre-market High we are looking for a long opportunity so let's play this chart out so right in the open here one thing that I notice is look at how strong of a candle we put in on that first one minute candle we put it in a very very strong candle at 197 13s which is that pre-market high and previous day high as well now for me even though this is a really good candle I'd want to let the stock keep forming because right when you open up on the market you might see these type of candles however the problem is is there's so much volatility going into open that you really need to let these candles form and let the chart tell you the bigger picture so let's just wait five minutes and see exactly what the stock shows us here we see a very clean example of buying pressure being put in the reason this is is because if you guys look at these candles here what do you see on these last four candles right you see that we try to bring the stock up we see a little bit of selling especially on this 934 candle but for the most part what we're looking at is these lower Wicks lower Wicks lower Wicks and lower Wicks this shows that even though we aren't putting in a little bit of indecision candles buyers are much stronger than sellers even at this level here okay and this is right into open what I would do here is showing that we did break that pre-market high level I would risk burst one minute candle rate I'd risk the close of that candle looking for that 200 and 270 level and 205 14 level right with that low risk entry pullback here on Tesla so we would enter in on this candle if you don't understand why we're in on this candle it's due to the fact that we're very near this key level extremely close to this key level and we have a big profit Target all the way up here at 270. this is a one to almost eight risk to reward ratio this means if I put in a hundred dollars or if I'm willing to lose a hundred dollars on this trade right here I'd make eight hundred dollars let's keep playing out this trade because we see how strong of a support Tesla has made and formed on that previous day high and pre-market High now as we see here we are have we have a very strong move to the upside but another thing that I want to notice is this pivot high as we can see on this pivot high on Tesla this is the previous pivot High we see that once we've broke we're consolidating at that 198.

58 level this shows once again how this is a significant pivot level for that consolidation on Tesla let's keep playing this out and as you guys can see here right we broke that pivot High came back and now we're retesting into that pivot high this shows that you could even potentially if you wanted add more of a position here on Tesla because this is confirming a move to the upside with a really low risk pullback entry so you could have added a starter position here risking a hundred dollars right for this trade here and then you can add more into your position for the total trade to risk 200 to make almost about fourteen hundred dollars now so let's keep playing this trade out as we can see we held that previous pivot high level extremely well on Tesla we see some consolidation coming in here because we still are below that 200 level but overall right we're seeing a strong move to the upside here now as we keep moving on we have another pivot level here at 199. 29 we see that the stock held this resistance and then turned into support here we broke it a little bit here but on the very next candle we held and we're still making a nice move to the upside so as you guys notice as these levels keep developing it is okay to draw levels on your chart as the stock keeps showing you new price action and data what most people fail to do is they'll only use the previous day levels or they'll use the previous four hour one hour levels and they won't draw new levels to show you know how the price is actually moving within the day and that's really really crucial so let's keep playing this trade out let's see exactly what happens here we see that we did get a nice break of that 270 level also as a stock keeps going up you could have potentially taken some out here some of your trade out here at 270 this would decrease your risk reward however it would definitely help you lock in profits and I would actually recommend taking some out at that 270 level just because that is a key resistance level and it's very important to lock in cash flow as you're trading intraday we keep moving up here on Tesla coming near that 205 level we hit about 204.