How To Draw Support And Resistance Lines In Thinkorswim?

How to Draw Support and Resistance Levels Properly

The entire concept behind trading stocks is to buy low and sell high, which in technical terms means to buy at support levels and sell at resistance levels. Knowing how to draw support and resistance levels is crucial to any trader’s success.

How to Draw Support and Resistance Levels

Learn how to draw support and resistance levels on a chart, with peak levels being resistance and valleys being support. Learning a new skill has a small learning curve, but it pays off in the long run!

1. Angular Momentum: How to Draw Support and Resistance Levels

Drawing resistance and support lines is similar to those “Magic Eye” pictures, and Dan has one and enjoys drawing them.

2. “The Magic Eye Reveals”

Candlesticks form patterns, and those patterns show key support and resistance levels. Learning how to buy the dip and gap and go are two popular trading strategies to investigate.

How Do You Determine Powerful Support and Resistance?

On a chart, look for as many previous highs and lows as possible; the more you find, the stronger the floors and ceilings, and the more powerful the support and resistance. Look for buying and selling pressure at these levels; the more buying and volume, the higher the level of support or resistance.

What Is The Best Charting Software?

ThinkorSwim charting is fantastic; it’s a little difficult to learn at first, but it’s well worth the effort. Stockcharts is another excellent charting service; if you’re looking to day trade, we highly recommend TOS.

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Connect The Peaks And Valleys

The key to spotting a trend is to connect as many peaks and valleys as possible, with at least two to three higher highs and higher lows in an uptrend and two to three lower highs and lower lows in a downtrend.

Add Indicators For Precision

Add other technical analysis indicators to your tool bag, such as the sma, ema, vwap, macd indicator, level 2 and time and sales, so you can find more precise levels to enter a stock and get the best possible entry.

Key Nuggets Of Wisdom

If you’re going long, buy at support and sell at resistance; if you’re going short, buy at resistance and sell back at support.

Where To Go From Here?

The stock market takes time to develop, and learning how to draw support and resistance levels is crucial to your success. Practice making entries in a paper trading account, and read our post on how to get started in the stock market for more information.

Sign Up For A Free Trial

Plotting support and resistance levels isn’t an exact science; you’ll sometimes have to guess to get a good idea. If you’d like access to our members-only videos where we expertly show you how to do it, sign up for a free trial here.

Does thinkorswim show support and resistance?

These are the best ThinkorSwim Support and Resistance indicators for identifying potential supply.

Do you buy at support or resistance?

Buying near support in uptrends or parts of ranges or chart patterns where prices are moving up and selling/selling short near resistance in downtrends or parts of ranges and chart patterns where prices are moving down is the basic trading method for using support and resistance.

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Which time frame is best for support and resistance?

The most common time frames are 10, 20, 50, 100, and 200 period moving averages; the longer the time frame, the more significant it is; a 200 period moving average is more significant than a 10 period moving average, and so on.

Can you draw in thinkorswim?

Open the Charting function in the thinkorswimsup>u00ae/sup> platform and draw or annotate your charts as desired. Save new charting sets by going to Drawings > Save new charting set. To access saved drawing sets, go to Drawings > Drawing Set and select a set.

Can I use thinkorswim for charting?

One of the most popular features of the thinkorswim platform is the Charts interface, which provides a visual representation of a symbol’s price over time as well as hundreds of technical indicators to aid in price analysis.

How do you confirm support and resistance?

Simply do the following to determine areas of support or resistance:

  1. Determine whether these large interests are buying or selling by looking at the PBV histogram.

Which indicator is best for support and resistance?


  • Fibonacci Support and Resistance.
  • Wolfe Waves.
  • Camarilla Pivots.
  • Murrey Math Lines (MML).
  • Admiral Pivot.

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