Support and Resistance Simplified PDF

Support and Resistance Simplified PDF

Support and Resistance Simplified PDF by Michael ThomsettThis easy-reading primer is the first work in decades devoted solely to ‘S&R”. From basic to complex strategies, every nuance and vital new application is explained in easy-to-follow terms. Trendlines, Channels, Chart Patterns, and more – are covered.

Category: Technical Analysis

Author: Michael C. Thomsett 

Language: English

Free Download link: At the end of the post

Introduction- Support and Resistance Simplified PDF

Foreword

It has been stated that the is its greatest disguise. and Resistance” (S&R) in the trading markets The concept of “Support simplicity of the market dates back to the original “Dow Theory,” and is perhaps often overlooked today due to its perceived simplicity. The reality is, support and resistance is perhaps the greatest contribution and most widely held concept in technical analysis, and has since become an invaluable method for technical trader and investor alike.

At its most basic level, support and resistance represents the “consensus of value” of all market participants at any given time. With the advent of technology and electronic quote dissemination and execution, newly devised applications make support and resistance an even more robust and farreaching precept. The progression of S&R’s application to market analysis and psychology, when integrated with real-time data derived from today’s new software charting programs, has been explosive. As a result, applying support and resistance methods has never been simpler or more effective for trading in today’s markets. Conversely, with real-time technology, many participants see support and resistance analysis too microscopically, subjecting them to volatile and choppy whipsaw signals and creating diminished conviction. Therefore, while the concepts have changed little from original Dow Theory, the application of the concept in today’s market environment has changed significantly. This excellent new primer explains these new dynamics, and the proper use of S&R using modern-day technology.

As the founder and president of the nations most recognized research and education facility for traders, Marketwise Trading School’s core curriculum and analysis begins with a thorough understanding of S&R. The integral role “S&R” plays in technical trading is a recurring theme of our classes and seminars and—more importantly—in our own trading methodology. It’s absolutely one of the most basic, yet most important, elements of technical analysis, and should be understood by anyone hoping to achieve sustained market success. Why? Because it eliminates most of the “guesswork” and allows you to make logical, well-supported trading decisions—rather than impulsive, emotiondriven decisions.

While Fundamental Analysis answers the question why there is movement in the market, Technical Analysis answers the question when through the use of chart formations and S&R analysis. Charts are comprised of many forms of market data— including moving averages, patterns, and indicators. This collection of data over time begins to reveal symmetrical patterns of market psychology known as “trendlines.” They are primarily represented through the uptrend line (the support line), the downtrend line (the resistance line), and the channels between them called the consolidation and stabilization lines. The interplay between these lines, or the forces of supply and demand, form the basis of S&R. By learning to read these patterns and trends across varying time frames, and becoming familiar with the psychology that drives them— you gain an edge that can more accurately time your entry and exit points, thereby putting yourself ahead of buyers and sellers to come. And, as savvy investors know, the only way to profit from directional strategies is to buy and sell before others.

Michael Thomsett’s Support and Resistance Simplified provides an excellent starting point. While not a comprehensive text on technical analysis, it is—by contrast—very accessible. It outlines the primary principles of S&R, furnishes basic applications, and gives you a solid foundation for moving forward to more advanced concepts currently available. For the experienced trader, this book will also serve as a “refresher” for reinforcing good trading habits that are enduring and foundational.

Once you’ve read Support and Resistance Simplified I hope you will be motivated to continue educating yourself on the vast array of technical analysis tools available to today’s traders, and continue to sharpen your charting skills. There are many excellent books on technical analysis to help you with this endeavor, including: Market Evaluation and Analysis for Swing Trading by myself and Bill Lupien (former Chairman/CEO of Instinet), John Murphy’s Technical Analysis of the Financial Markets, Thomas Bulkowski’s Encyclopedia of Chart Patterns, and his new Trading Classic Chart Patterns, and the all-time classic Technical Analysis of Stock Trends. There are also courses, workshops and seminars you can attend that will help you refine skills and benefit from the experience of experts—and I encourage you to do so.

As a passionate and dedicated trader, I’ve learned some hard lessons, and yes painful and costly lessons over the years. But I also know without doubt, the stock market is—and has always been—the single greatest institution to acquire wealth. Every time I took a trading misstep, it strengthened my resolve to develop a way to gain an edge in the market. To this day, the simplicity of S&R is the foundation to our successful method of gaining the often-elusive edge. We are all students of this dynamic business called trading, and because you are reading these words now, you have taken a valuable step toward continuing your education. I congratulate you, and encourage you to continue on this path. Sometimes it’s a wild and crazy ride— but it’s definitely worth it!

Trade Wise!

David S. Nassar
Founder/CEO
MarketWise Trading School, L.L.C

Table of contents- Support and Resistance Simplified PDF

Foreword 7
By David S. Nassar
Introduction 11
Chapter 1- SR: The Foundation of Technical Analysis 17
Chapter 2- The Dow Theory: Applying SR to Individual Stocks 37
Chapter 3- Trend Lines and Channels: Techniques to Identifying SR Levels 49
Chapter 4- Chart Patterns: Visual Confirmation of Price Movement 59
Chapter 5- Swing Trading: Creating Maximum Profit Opportunities 77
Chapter 6- Learning to Forecast SR Levels 87
Chapter 7- Volume: The Other Confirming Measure 97
Chapter 8- Applying Modern Innovations to SR Applications 105
Glossary 115
Educational Resources 119

About the author

Michael C. Thomsett has written over 50 finance and investment books. He is the author of the successful Options (John Wiley & Sons) now in its fifth edition, which has Getting Started in sold over 175,000 copies. He also wrote Investment and Securities Dictionary, which was named by Choice Magazine an outstanding academic book of the year and was also published as a Webster’s Dictionary. He also wrote Master Fundamental Analysis and Mastering Technical Analysis (Dearborn).

Thomsett also has written several real estate investment books, including J. K. Lasser’s Real Estate Investing (John Wiley & Sons). He resides in Washington State and has been writing for 25 years.

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