What is up, everybody welcome to trades trades, where we give technical analysis on different stocks in the stock market as well as buy hold or sell opinions on these. Given stocks i'd like to preface by saying that i'm not a financial advisor nor expert, i'm just some random dude on youtube, so take what i say with a grain of salt. With that being said, today, we are going to be looking into how to identify a resistance level and potential breakouts. So for our example, today we are going to be looking at ticker symbol, solo solo, electro, mechanical vehicles corporation.

Now it is very easy to find a resistance level, and i know that sounds maybe to some like it is not but you're, literally looking for one thing: you're looking for candlestick wicks that touch a certain price valuation and reject and come back down. So, in the immediate near side, i will show you an example of what this looks like. So in solo, the last two days we have seen some price rejection at this given level. We see three different candlestick wicks that touch this level of 765, reject and price correction occurs and the price valuation drops now.

What happens if we go past? The 765 well in the history of the stock market patterns tend to repeat themselves and when a stock goes past, this resistance level, typically a breakout, follows suit. So if you see a stock that hangs above this, this given resistance level for one two or three candlesticks, it is very likely that you will have a breakout. Now there are times when false breakouts occur. That might be a video that i touch on in another video.

If you'd like to see that just let me know in the comments down below, however, more often than not, you will see a breakout come after this sort of resistance level is met. Now, let's back it up, this is an immediate resistance level, but there are more than one kind of resistance. So once we break through this, there will be another resistance level. Does anyone have a guess i'll? Let you pause the video right now, so you can try and identify the next resistance level for solo, given what i just told you now, hopefully you were able to find it.

If not, i will show you right now: that's okay! We have another resistance level sitting right about here. We have about one two, three, four, five, six, seven different candlesticks that touch this line right here at 794 that rejected and price correction came to follow. Now what would happen if we broke through this resistance level? You may have a potential breakout. You may have a false breakout.

Let me show you an example of a breakout that has occurred in the past for solo, so you can see here we did have a resistance level at uh. How about that 794 pretty much exactly and if you zoom in here, what do we have well rejection consolidation? We tested this resistance level, we came through a couple, candlesticks were hanging out just below and we popped off. We came up and we saw all new new all-time highs that that came. We have another resistance level right here: price rejection, correction, candlestick test it pop off.

Now, when you see this kind of thing happen, that is pretty typical of breaking through resistance level. So it's a very easy way, if you're a day trader to find opportunities to make a quick one to five minute trade, where you can turn around a pretty quick profit, and these are 30 minute volume indicators. So this is an hour and a half time period where this stock just went pretty much parabolic. You know at the bottom here we were sitting at.

You know about nine dollars and eleven cents in at the top, just just around 13 bucks. So that's a great opportunity to make a quick buck and, if you're able to identify these resistance levels, you may be able to get in on some movement get in on some momentum, make a quick profit and exit your trade. I hope that was helpful guys if you have any questions, please drop them in the comment section down below. If you enjoyed the video, please like it, if you did not dislike it, either way you're helping out the youtube algorithm, and i appreciate it greatly.

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