Charts Work!

Here is a trade I played today with simply support and resistance. This is one of the most basic charting techniques. First you find a support and a resistance, and buy at support sell at resistance. This can help if you are pushing a lot of size and works great with small scalp trades.

$FB - As you can see, the red box and arrows are resistance and the green box and arrows are support. First red box makes a solid resistance point. Then as you can see when it breaks that point the stock runs great! Then a pullback, you can assume this pull back as the new support line. As you can see the next time the support line is broken the stock drops big. Then you are back to your first line which was resistance at first but now acts as a support. You can see my entry is a little early. I had my stop at 58.07 because you always want to be careful with the false breaks, so I kept my resistance a couple cents under the support. Then good bounce from the support straight to the new resistance line! It really is that easy! I recommend these trades for quick bounce or scalp trades only. Unless you are using this strategy for swing plays and putting support and resistance on the daily chart.

I hope this made sense... It might be a little confusing but just read this article about support and resistance. Swing Trade Stocks "Support and Resistance". This article with make a lot more sense! Thanks!