Learning how stocks move & knowing what pattern to look for can help you out significiantly when trading, it can help you figure out when to enter and close on a position, and also give you more clarity and understanding on the market in general.
You can think of support and resistance as celings and floors, support being the floor and resistance being the cieling.
The rule of thumb is this, you short when the stock is at its resistance and buy when it's at its support but, if the stock brakes its resistance then you will want to buy it, this is when you have a breakout.
If the stock breaks its support and falls below it you will want to short the stock, which is called a breakdown.
So when stocks arent trading at there support and resistance lines, they are usually in a channel moving ether up, down or sideways.
Strategies with using Channels.
Shorting when it breaks its Channel.
Buying on the Dips of the Channel Running up.
Support, Resistance, and Channels are how stocks move and these patterns can be found on every time frame trading.
Coming Soon: How to Find Stocks that are about to Breakout