Learn to trade stock successfully.

Learn to profit consistently.

I'm Ryan Mallory and on my weekly podcast, I'm going to teach you the ends and outs of a complex, ever-changing stock market.

You will learn to trade better, trade smarter,

and profit bigger. Now, let's go trade. Hey everybody, this is Ryan Mallory. Ready to do a podcast episode today on support and resistance. Now, on my Twitter handle by the way is at share

planner I had a person ask me hey can you do a podcast on support and resistance at first I was

kind of hesitant about doing that because I felt like man how do you do that without showing charts

and graphs but I think I can do it So I'm going to do a podcast on

support and resistance, just showing you how I use them, how they benefit me and my trading in

terms of entry prices, in terms of stop losses. For those who don't know, support and resistance

is a vital part of technical analysis. Support is typically a place underneath the current price of a stock that shows a willingness for that stock to bounce at a particular price level. Now resistance is a place on the chart above the current price where the stock tends to sell off when it tests that level.

Now, does that mean that every time a stock price tests a support level that it's going to bounce or every time it tests a resistance level that it's going to sell off?

No, because what makes it even more interesting is when it doesn't do that.

When it breaks through resistance, you have yourself a breakout.

When you have a push through support,

you have a breakdown. So that is a broad level view of what support resistance is. So it can take a lot

of different forms too. But the two most common forms of support and resistance is price level and

then trend line. So the price level is typically like a flat dollar amount. So if you draw a horizontal

line across the chart that connects multiple price points where a stock has bounced in the past,

that is a price level support. So let's say a stock trading at $40 goes down to $35 and bounces

every time. That's going to be a support

level there. So it's price level support. So it keeps bouncing off of that $35. Now where a lot of

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