{"id":12525,"date":"2011-06-22T16:25:35","date_gmt":"2011-06-22T20:25:35","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=12525"},"modified":"2013-03-15T10:56:11","modified_gmt":"2013-03-15T14:56:11","slug":"this-concept-could-get-you-through-the-learning-curve","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/this-concept-could-get-you-through-the-learning-curve","title":{"rendered":"This Concept Could Get You Through the Learning Curve"},"content":{"rendered":"<p>Understanding how to identify support and resistance areas and execute trades at these prices is a prerequisite to become a successful day trader. When I reflect back on the dozens of people we have trained over the years I can&#8217;t recall a single trader who made it to consistent profitability who didn&#8217;t have a few plays in their playbook that allowed them to create cash flow from this concept.<\/p>\n<p>Today I am going to give you an example of how to identify important support\/resistance in a stock that reports fresh news. Then use pre-market price action to confirm whether these levels will have significance for intraday trades.<\/p>\n<p>This morning FDX reported earnings and reacted positively. It was trading in the pre-market above 91. The first thing I did was look at a one year chart to try to find important prices near 91. I was able to identify 90.80 as clear support and 92 and 95.30 as resistance areas. The 92 level was a bit trickier as it was more important back in December in January versus 90.80 which clearly had offered support several times in recent months.<\/p>\n<p>Then I started to observe the pre-market price action. Levels established in the pre-market can be very significant once the market opens. I am most comfortable using these levels if there is a large amount of volume traded at them but they may still be useful even if that is not the case. In today&#8217;s pre-market 91.80-92 served as resistance and 91-90.80 served as support. These &#8220;zones&#8221; should be faded right on the Open. Later in the day it may be a different story.<\/p>\n<p>I have marked up the charts for your review. I didn&#8217;t catch the short right on the Open from 91.90 but did get long at 90.80 and caught reversal. And I made one more trade shorting when it reversed again from 92. The one thing you need to be most careful of is not making trades in the middle of an established range. I got away with one such trade around 9:40AM when I shorted below 91.50 and it traded down to 90.80 but it very easily could have traded up to 92 first and I would have been in a position of weakness.<\/p>\n<p><a href=\"http:\/\/twitter.com\/sspencer_smb\"><img decoding=\"async\" src=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" alt=\"\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/06\/FDX-daily-june-22-2011-3.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12591\" title=\"FDX daily june 22 2011 (3)\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/06\/FDX-daily-june-22-2011-3.png\" alt=\"\" width=\"450\" height=\"300\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/06\/FDX-daily-june-22-2011-3.png 750w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/06\/FDX-daily-june-22-2011-3-300x200.png 300w\" sizes=\"auto, (max-width: 450px) 100vw, 450px\" \/><\/a><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/06\/FDX-intraday-june-22nd-2011.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12585\" title=\"FDX intraday june 22nd 2011\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/06\/FDX-intraday-june-22nd-2011.png\" alt=\"\" width=\"450\" height=\"300\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/06\/FDX-intraday-june-22nd-2011.png 750w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/06\/FDX-intraday-june-22nd-2011-300x200.png 300w\" sizes=\"auto, (max-width: 450px) 100vw, 450px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Understanding how to identify support and resistance areas and execute trades at these prices is a prerequisite to become a successful day trader. When I reflect back on the dozens of people we have trained over the years I can&#8217;t recall a single trader who made it to consistent profitability who didn&#8217;t have a few plays in their playbook that &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/this-concept-could-get-you-through-the-learning-curve\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":143,"featured_media":12591,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,8,3,456],"tags":[1377,1376],"class_list":["post-12525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","category-steven_spencer_steves_blogs","category-technical_plays","category-trader_development","tag-l","tag-p"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>This Concept Could Get You Through the Learning Curve | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/this-concept-could-get-you-through-the-learning-curve\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"This Concept Could Get You Through the Learning Curve | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Understanding how to identify support and resistance areas and execute trades at these prices is a prerequisite to become a successful day trader. When I reflect back on the dozens of people we have trained over the years I can&#8217;t recall a single trader who made it to consistent profitability who didn&#8217;t have a few plays in their playbook that ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/this-concept-could-get-you-through-the-learning-curve\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2011-06-22T20:25:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2013-03-15T14:56:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/06\/FDX-daily-june-22-2011-3.png\" \/>\n\t<meta property=\"og:image:width\" content=\"750\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"sspencer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" 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