Trendlines & Support/Resistance FTW · Day Trading for Beginners

Trendlines & Support/Resistance FTW

I wanted to share a trade I did today where I gratuitously drew the trendlines and support/resistance lines as the trade played out. The stock was MU and I took a short position on it because

a) the market was down

b) the stock's D1 chart was very weak

c) the stock was well below VWAP

(all hard rules I have in my developing trading strategy)

I thought it was interesting watching how the price action nicely respected those lines as the trade played out. It gave me a lot of confidence knowing where the price was going next, where to watch for breaks and when to scale up my position size off rebounds of resistance.

Lemme know your thoughts!

6 comments