How to Draw Lines of Support and Resistance

So when we look at this chart what do you see? We see price moving up. And you want to look at common areas where price is making, um, stall in certain areas, pops above and then retest. It moves lower holds or breaks below it. Those are areas you draw a horizontal line for example. I'm seeing some here. See there is a high here, a low here, a high here, some low here. So this is an area of support and resistance. So in this case is support. In this case is resistance. Support means price holds the area is a floor holds and it goes up. Resistance price holds price down. So reaches and moves out reaches and moves down reaches breaks. This is a break out. Retest hold goes. Yes. So this is a support. We draw several more. We're going to make like the inside of a house where there are different floors. Oh I see some other areas over here. You see some of those floors over here and then some of those lows over here. This is another area of support. Do several, do several floors. And I like to, to place um, uh, an event space in between, in between the charts. And again, I'm showing you this particular chart. Just because the trend is up, it's easier to understand. And we are looking at prior history. So you want to go back in history as far as you can as far as your chart allows you. So you can. Use historical data. You will use this high here. There's not much over there, but I like the spacing between it's it's kind of even similar. All right. And then let's see. Remember there. The final blows I now this price broke out. So there are there many points of reference other than the current price action. That's as far as we can go. There. Let's see some some area of, um. Okay. Some support there. And then there's another one in here. Again I'm trying to space them out so they're kind of even. Here. And then one of six. Okay. So those are lateral support and resistance areas. There are areas you don't want to be as exact as this, even though it's nice when price reaches exactly or support and exactly resistance in those areas. But those are areas. So it's a section where price holds and goes or stall and moves.