Understanding Charts easy way for Beginners

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After struggling for few days finally I have got few reliable resources from where I started learning about charts.
I will put my understanding here in layman's terms.Hope will save some time for beginners who are enthusiastic but getting hard time to get to the starting point. :clap:
I will talk about these topics.

  1. Support and Resistance
  2. Descending Channel
  3. Symmetrical Triangle
  4. Breakout
  5. Bearish Wedge Pattern
  6. General Motors Bankruptcy Example
  7. Identifying 8 Key Points on Google’s Stock Chart
Thanks for this wonderful site to enable learning for beginners like me.

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Support and Resistance

The recent price action of Energy Conversion Devices (ENER) offers a great example of simple support and resistance. Support and Resistance is a basic form of technical analysis that can be used in a variety of different circumstances to provide investors an easy way to predict stock movement.

We can refer to the six month daily stock chart below of Energy Conversion Devices (ENER) as our example:

1. Points one give us a first glimpse into the resistance ENER saw around $35 a share. As we can see once the original high was made it took two more pushes to break through, which lead to a large stock price gap and new highs for the stock.

2. Points two offer another more recent example of ENER at technical resistance. This time it was at $73 a share and the third push was the one to claim higher highs.

3. Points three show us the support ENER has received while forming its latest base. This would also be called a support trendline. A common trend is for resistance to turn into support, which we can see with the first “3” on the left. The $60 resistance once broken then became support.

4. Point four highlighted in purple shows us the next area the stock will most likely find resistance. Climbing above $83 a share would not represent higher highs but also new 52-week and all-time price highs.

Hope it helps, let me know if any doubts.

Thanks Cheers


Well-Known Member
How would a person know whether a support would break or not?
1) SR must be valid - something obvious on chart - HTF pivots/last impulse, Multiple tests and rejections, Extremes of Large spikes ..
2) Most important feature of a valid SR holding is price rejection. Price must reject quickly. If it hangs around then BO is more likely. Look for pin bars/engulfing bars after BO and quick movement away from level.
Price making small range within range near level or higher lows towards level is not showing rejection and may break
3) Large spikes to SR ( => some overextension) is more likely to hold than if price is trending towards it
Oops just logged in so many activities.

Guys :thumb: really people are asking doubts which I too have like when would we know the support would break and others...

Thanks a lot for actively involving in the discussion, i am yet to go through all the posts.

just wanna say WOW :) and Thanks to all :clapping:
the key is not finding support and resistance but finding how much is the probability that it will hold then only you can trade else its just of no use.


But i think the best it can help you for entry and exit point.When you know the its at the support level and will bump back to resistance, but if you see it breaking support we can just exit keeping a SL

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