 Welcome back folks tonight. What we're looking at is the importance of support and resistance It is crucial that you understand it and is so important to know Where by where buyers actually leave the boat and where buyers jump in the boat So basically when they are buying when they are selling so if we can know Where that will happen ahead of time. That's when you can have a secure plan and This is pre-market Before the open on Monday Facebook, so we're looking back Wednesday of last week until Monday this week so This line that you see across this black line Well, we all see that it becomes support, right? Everything is dropping on that and it becomes support this area here is outside market hours It starts working here and then it jumps down on support again And then it gets very close to breaking it, but it bounces off and then again. This is after hours As soon as we open is this on that support line and then it flushes Through and then it becomes resistance right there becomes resistance and again here it becomes resistance This is for the first the first line that we need to look for Now you all have to see this line in what I did I drew a line in my chart making sure that I would see it again in today Now the other line is the one on top right this one here look at how it goes off and that becomes resistance up up there and It's just not wanting to cross and again here it becomes resistance Right right there. It becomes resistant. So basically we found we found buyers every time we hit the bottom line and Sellers showed up every time we hit the top line you guys all see that right now, let's move out of here and See how it happened on the open of Monday and I was bullish on it because of this look at this yellow line the yellow line is the pre-market high and I'm looking at the pre-market high and if you look at all the way back We can see that it used to be a some sort of a Resistance so we agree that if we break that line We could become bullish where to well at least till our Line that we drew at 335 Now this one is the pre-market high and as soon as the market opened look well You see the wick here, but while it was trading obviously it opened at That level and it went green it broke through and it appeared as if we were going to break Directly to that side, but not market was pulling back Hard at the time so basically what it did it followed a bit of the market, but it's strong on support So basically we entered very quickly here thinking it would rise Right away, but not what happened was we came down to support and then we started rising To our first target However, the volume was so high and the momentum was so high that we ended up getting in a very Short period of time a little over a hundred percent on that play for a start of the week But you all see that we played from support and then it crossed resistance With a vengeance right with volume right here, and it was okay for us to get out at that point first thing we played from support that we had previously selected and the idea was to get through 30 335 which we did and I was happy with that and see what happened afterwards It kind of dribbled down then up it tried to get through here Didn't will almost and then it didn't and then it continued now. This is for Monday right the next day. Let's get out of here for a second The next day is today This is the activity from After hours and this morning we were opening lower. There's a gap down in the market. We went down to 460 Started 465 ish and then went down to 460 even the hair below if I recall, but That's not that's not the point. The point is this we opened right away bullish and This is what happened Bullish all the way to what to our line that we had. I mean, I'm not inventing this line, right? This line was already there From the previous weeks pre previous days. I mean from last week at least So knocked its head right there at the gate not long after the beginning of the day and then it just melted away and This is Natural stock behavior you need to learn this see this line here and There so basically it goes to Resistance and it comes back down to Now support because this is as low as it went today This is as low as it wants to go now. So this is a double bottom Facebook loves double bottoms. So when you see this you have to You have to be very prepared for something to happen now how to go about this What I do sometimes is this I put an alert a little higher than the low of that day You know, let's say you put an alert there. So it will alert you on the low of the day That you selected whenever it gets back there. So, you know, Facebook is like Oh, it's coming back down to where it started. Hmm. Okay. Let's look at the chart So let's look at it together here. And I must admit that I must admit that I was interested in it's in the train before we alerted and I'll show you what drew my attention was this We're here on a bottom and then a tad below but hardly and it's bouncing But it's not bouncing hard. If you look at spy at this level It's trading flat and it wants to come down even further Facebook is a heavy weight in the S&P 500 or heavy Call it heavy or then other tickers, but you know, it's still part of the big weight in the S&P 500 So when spy is moving to the downside, you can expect that either we go flat or Try to have a sympathy play and probably move down with it However, it has shown that it has a lot of potential a lot of strength lately and On the last two days for sure So we are looking at something that is kind of strong We are coming back here to a higher low higher than this higher than that So this is the point where I was interested in the play and I waited for confirmation with which was this candle now I sat on my hands because I Was under the impression that it would probably do You know one down and one up, but look what happened was this this candle is where we crossed This 330 line remember back yesterday where that the The play we opened the play on the previous day and it went up straight to 335 We are entering that side. See this wick is entering the 330 line So this is pretty much where we open the play Well, well, I was extremely interested in the play But I was I wanted it to come back down and try again. However At that time at that point there was another green candle While spy was moving to the downside. So I'm like, okay, this is truly showing us one thing Strength so I decided to say hmm. What the heck? We're going in. That's me. We're going in so because we were crossing above My line of 330 some my line. I mean, it's the old support line from the last week or so, right? So if we're crossing bullish on top of it, we're we're going to move up to the outside to The 335 area so decided to alert there the 335s For a reason because we were going to 335, right? So it was 201 we alerted 290 As a reference, I was looking at the play at 240 and waited saddle my hands decided to eventually jump in and say what the heck Play is going to be good. So might as well jump it to 90. We played the 335 and Told you in chat that what we had to cross Was this line? Which was, you know, remember 331 73 what I told you it was see how it acted again as Resistance that go back. Let's go back together on this one This line 331 73 yellow line It was yesterday's pre-market high It's all linked together, right? So this is yesterday's pre-market high 33173 Let's move back to today where it becomes resistance again here 33173 Is pre-market high see this wick here and it bounces down now This is where we need to make sure that we cross and we did came back down up Down on this line again right support resistance Price levels extremely important. This is what I'm trying to show you here and then we're down on this one And what's the target? This guy here, which is the 335 line that we had drawn it drawn in the shark in the chart and we get where? Here and this is where we took our profit. We took 75% on this one It might have gone a little further, but we were extremely happy With the turnout which was on target at 335 We got 75% on this one. The idea was this Soon as we crossed above the previous resistance support line of 330 It becomes support. See how? it went, you know super green red now in support and pre-market this was Resistance it becomes support and we move move on and then it tries to get through doesn't doesn't even spy was keeping on it was keeping If you compare spy from this level, I mean, I think a spy started from here and it just it just went straight up while spy spy was moving up still Facebook has had a hard time crossing over basically it's just telling you that this resistance line of 335 is strong. It doesn't matter. Our play was from the bottom Well from this line up to this line and the plan worked Support resistance price levels. We all looked at it together And when you zoom out a little bit and you see these black lines You say hey, this makes sense, right? This makes sense, but you all planned it ahead from the previous week 330 335 and then on the Monday you you realize that oh this becomes support and Then again today it will become resistance at one point We move in as it crosses over and we're out on Resistance again. So basically if you keep knowing a ticker Trying to adapt to what it's doing Understand the behavior you can play twice in a row. We played it yesterday four hundred Today, I waited a bit too long, but we played 75 which is not negligible and we're all happy. So I Hope you guys are learning something with this Keep up the good work and see you guys in chat. Don't forget to either like or subscribe It really helps us out. Have a good one folks