Day 2: Understanding Support & Resistance – The Trading Game Changer

Welcome back to Day 2 of your *30-Day Trading Challenge!* 🚀

Yesterday, you set up your trading tools and learned candlesticks. Today, we’re diving into support & resistance (S&R)—the backbone of every trading strategy.

By the end of today, you’ll:

✅ Know what support & resistance levels are

✅ Spot them on any chart

✅ Understand why traders obsess over them

Let’s jump in!

Step 1: What Are Support & Resistance?

Support = Price Floor

• Where buying pressure increases, stopping price from falling further.

• Think of it as a "springboard" where price bounces up.

Resistance = Price Ceiling

• Where selling pressure increases, stopping price from rising further.

• Think of it as a "glass ceiling" price struggles to break.

(Price bouncing between S&R levels)

Step 2: How to Draw S&R Like a Pro

Rule #1: Look for Price Reactions

• Support: At least 2-3 bounces off the same zone.

• Resistance: At least 2-3 rejections at the same zone.

Rule #2: The More Touches, The Stronger the Level

• A level tested 5+ times is stronger than one tested twice.

📌 Action Task:

1. Open TradingView and pick any asset (e.g., Bitcoin, Tesla, EURUSD).

2. Draw 1 support and 1 resistance level using the horizontal line tool.

3. Check if price reacted to those levels in the past.

(Example: "I drew support at $100—see how price bounced here 3 times last month!")

Step 3: Why S&R Matters (Real Trading Uses)

1. Entry Points

• Buy near support (cheaper price).

• Sell near resistance (profit-taking zone).

2. Stop-Loss Placement

• Place stops below support (for buys) or above resistance (for sells).

3. Breakout Trading

• If price breaks resistance, it may surge higher (and vice versa for support breaks).

📌 Pro Tip:

• Zoom out! S&R on weekly/monthly charts matter more than 5-minute charts.

Homework for Day 3

• Find one strong S&R level on a chart and screenshot it.

• Watch this 5-minute S&R video.

Tomorrow: We’ll combine candlesticks + S&R to spot high-probability trades!

Final Thought

"Master S&R, and you’ll see markets in a whole new light."

🔗 Follow My Trades:

• Track my live S&R breakdowns on my portfolio.

• Got questions? DM me @marketlokam!

📌 Bookmark this—Day 3 drops tomorrow!