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Day 2: Understanding Support & Resistance – The Trading Game Changer

Welcome back to Day 2 of your *30-Day Trading Challenge!* 🚀

Yesterday, you set up your trading tools and learned candlesticks. Today, we’re diving into support & resistance (S&R)—the backbone of every trading strategy.

By the end of today, you’ll:
✅ Know what support & resistance levels are
✅ Spot them on any chart
✅ Understand why traders obsess over them

Let’s jump in!
Step 1: What Are Support & Resistance?
Support = Price Floor

Where buying pressure increases, stopping price from falling further.

Think of it as a "springboard" where price bounces up.

Resistance = Price Ceiling

Where selling pressure increases, stopping price from rising further.

Think of it as a "glass ceiling" price struggles to break.

Support & Resistance Example (Price bouncing between S&R levels)
Step 2: How to Draw S&R Like a Pro
Rule #1: Look for Price Reactions

Support: At least 2-3 bounces off the same zone.

Resistance: At least 2-3 rejections at the same zone.

Rule #2: The More Touches, The Stronger the Level

A level tested 5+ times is stronger than one tested twice.

📌 Action Task:

Open TradingView and pick any asset (e.g., Bitcoin, Tesla, EURUSD).

Draw 1 support and 1 resistance level using the horizontal line tool.

Check if price reacted to those levels in the past.

(Example: "I drew support at $100—see how price bounced here 3 times last month!")
Step 3: Why S&R Matters (Real Trading Uses)
1. Entry Points

Buy near support (cheaper price).

Sell near resistance (profit-taking zone).

2. Stop-Loss Placement

Place stops below support (for buys) or above resistance (for sells).

3. Breakout Trading

If price breaks resistance, it may surge higher (and vice versa for support breaks).

📌 Pro Tip:

Zoom out! S&R on weekly/monthly charts matter more than 5-minute charts.

Homework for Day 3

Find one strong S&R level on a chart and screenshot it.

Watch this 5-minute S&R video.

Tomorrow: We’ll combine candlesticks + S&R to spot high-probability trades!
Final Thought

"Master S&R, and you’ll see markets in a whole new light."

🔗 Follow My Trades:

Track my live S&R breakdowns on my portfolio https://moinuch.in/ .

Got questions? DM me @marketlokam!

📌 Bookmark this—Day 3 drops tomorrow!