{"id":43824,"date":"2016-06-20T11:02:42","date_gmt":"2016-06-20T15:02:42","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=43824"},"modified":"2023-06-08T11:58:26","modified_gmt":"2023-06-08T15:58:26","slug":"how-do-i-use-previous-support-and-resistance-levels","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/how-do-i-use-previous-support-and-resistance-levels","title":{"rendered":"How Do I Use Previous Support and Resistance Levels?"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/lBiR_xA2AQQ\" width=\"600\" height=\"338\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<blockquote><p>Hi Bella,<\/p>\n<p>I have been learning a ton from <em>One Good Trade<\/em>, <em>The Playbook<\/em>, and all the online educational content you have. Thank you!<\/p>\n<p>When you are analyzing a stock \u201cin Play\u201d and looking at previous support\/resistance levels, how much weight do you give them going forward with that days trading? After all, we would be trading this stock in play BECAUSE it is acting unusual, which might make those prior levels less meaningful on this day.<\/p>\n<p>How should I think about this when analyzing a stock in play?<\/p>\n<p>Thanks so much for being one of the TRUE educators in this space!<\/p>\n<p>Best,<br \/>\nBen<\/p><\/blockquote>\n<p><strong>@MikeBellafiore<\/strong><\/p>\n<p>Whenever we make a trade decision we consider:<\/p>\n<ol>\n<li>Big Picture<\/li>\n<li>News Catalyst<\/li>\n<li>Technicals<\/li>\n<li>Reading the Tape<\/li>\n<li>Intuition (*for experienced traders)<\/li>\n<\/ol>\n<p>Let&#8217;s break down variable #3- technicals.\u00a0 We consider the intraday technicals AND the long term technicals, when make a trade decision.\u00a0 Yes! we look for levels intraday when trading a Stock In Play.\u00a0 But also Yes! we consider previous support and resistance levels when making a trade decision.<\/p>\n<p>Let&#8217;s use $DIS for a simple trade today, as an example.<\/p>\n<p>DIS was In Play:<\/p>\n<blockquote><p>THUMBS UP: A strong opening weekend for its film &#8220;Finding Dory&#8221; sent <span class=\"xn-org\">Disney<\/span> higher.<\/p>\n<p>The Pixar sequel grossed <span class=\"xn-money\">$136 million<\/span> in North American theaters.<\/p>\n<p>That was more than analysts expected and the most for an animated movie.<\/p>\n<p><span class=\"xn-org\">Disney<\/span> stock climbed <span class=\"xn-money\">$1.52<\/span>, or 1.5 percent, to <span class=\"xn-money\">$100.52<\/span>.<\/p><\/blockquote>\n<p>It opened and spiked to 100.80ish intraday, as you can see from the intraday chart below:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-43827\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/06\/dis-intraday.jpg\" alt=\"dis intraday\" width=\"600\" height=\"545\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/06\/dis-intraday.jpg 770w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/06\/dis-intraday-300x273.jpg 300w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/06\/dis-intraday-768x698.jpg 768w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/p>\n<p>If we look at longer term support and resistance levels, we will notice resistance at 100.80.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-43826\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/06\/DIS-R-1024x870.jpg\" alt=\"DIS R\" width=\"600\" height=\"510\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/06\/DIS-R-1024x870.jpg 1024w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/06\/DIS-R-300x255.jpg 300w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/06\/DIS-R-768x652.jpg 768w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/06\/DIS-R.jpg 1196w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/p>\n<p>I noticed resistance on the Tape at 100.81, an unsustainable spike pattern intraday, and DIS at longer term resistance on our charts, so I placed a small short.<\/p>\n<p>The trade: short DIS Tier 1 with a stop above 101 for a move down to 100.<\/p>\n<p>Yes! we consider longer term support and resistance levels when we trade Stocks In Play.<\/p>\n<p>Thank you for the question.\u00a0 As always, I hope that helped.<\/p>\n<p>*no relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hi Bella, I have been learning a ton from One Good Trade, The Playbook, and all the online educational content you have. Thank you! When you are analyzing a stock \u201cin Play\u201d and looking at previous support\/resistance levels, how much weight do you give them going forward with that days trading? After all, we would be trading this stock in &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/how-do-i-use-previous-support-and-resistance-levels\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":43825,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[135,5027,1014,1152],"class_list":["post-43824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","tag-levels","tag-previous","tag-resistance","tag-support"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Using Support and Resistance Levels | SMB Training<\/title>\n<meta name=\"description\" content=\"Learn how to effectively use previous support and resistance levels in your trading strategy. 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