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 am 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 at how to identify support levels within a stock so that you can get yourself a solid entry point for a swing trade deal.

Now. What you're looking for is very, very simple. It is not hard at all. Anybody can do this, you're, literally looking for candlesticks, so what you're looking for is a point in which you are seeing either consolidation or price rejection more than one time.

So i pulled up an example here for solo solo once upon a time reached a level of 13, and we saw a pretty solid price rejection here and what you're, seeing which is very important, is these candle wicks? The wicks here touch the support level and instantly come back up and what you're seeing is the price valuation dropped? You see it touched this level here at 581 and it comes back up. That is an indicator that shareholders or buyers do not think this price valuation is a fair price, so it will never reach lower than this given price unless it is an oversold territory which is very possible, and if that is the case, it's a great buying opportunity. Anyways, so this is a support level for solo. This is a bottom line, support level.

This is one of the i'd argue one of the weakest support levels. A strong support level is when you have multiple candle wicks that touch the line. So, what's another one for us here, another support level for solo looks to be about here, and that is because we have three different points in which the price touched below this line and came back up. There's four candles here that went below it came back up.

Five, six seven, eight nine 10, 11 12 13., and this is over a spread of about 10 days or so so this is an indicator that hey shareholders or buyers do not think this is a price valuation that is fair for the stock, so price will come Back up shareholders see this as an opportunity to buy or buyers see this as an opportunity to buy, because this is an under valuation of the stock. So, to make it very simple for you you're looking for candles that come to a certain level and you see a price rejection, you see the price come back up. Let's take a look at another stock, so we can get another idea. We are going to be looking at xp e v x, paying here's a 30 day chart for us, i'm gon na.

Let you guys pause the video and see if you can find a support level for this stock, hopefully you're able to find it. This, for me, is the support level right about here and if we zoom in you can see, we have multiple candlesticks that touch this and come back up. We have one two three, four, five, six different candlesticks within these three days that touch the support level and we see a price rejection and the price climbs back up. That is as easy as it gets, and support levels are great opportunities to buy in to a stock.

It's a great entry point. So if you're looking at a swing deal, you want to find a very solid support level. You don't want to buy in on the hype unless you're planning on day trading and selling immediately, because otherwise you can become a bag holder, you're looking to get in as low as you can and get out as high as you can. That is what i have for support levels.

I hope that was a helpful video. If you have any questions, please let me know in the comment section down below. Otherwise that is all that i have for you today. So thank you for coming.

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