By default, the Support/Resistance lines will be displayed when you launch your Live Charts. You are able to turn it On or Off by clicking on the S/R button at the top right hand corner of the chart window.
If you are new to charting, support and resistance lines are a good area to get started. Basically, support is the price level when demand is thought to be strongest, thereby suggesting a price level for entry. Resistance is the price level when selling is thought to be strong, thereby suggesting a price level for exiting.
StockCharts website provides a very comprehensive explanation of support and resistance lines with many pictorial examples.
HOW TO USE THE S/R LINES ON LIM & TAN CHARTS?
1. Buying near Support lines
Let's suppose you have been targeting to add UOL into your portfolio. A quick look at it's chart above shows that it had broken the support and nearing Support 1. This gives you an idea that the stock is trading on a low and you may wish to consider entering the stock now or in the next few days. If you are the type that is very risk adverse, then you might set yourself an even stringent criteria whereby the stock has to drop below Support 1 of $5.62 before buying.
Let's suppose you are sitting on some profits for DBS, and looking to sell it off. Today's chart shows that it has a resistance breakout, indicating bullishness. This might be a good time to take some profits.
If you notice, there are 2 sets of Support and Resistance lines. These lines can be price levels where you buy or offload part of your holdings, leaving the balance for the next support and resistance lines. Here's a good article about Staggering Your Trades As An Investment Strategy.
4. The Bigger The Difference in %, The Better Your Odds
Did you observe the percentages in blue on the charts? They represent the percentage that the stock must move from current price to hit the support / resistance lines. I would say, the bigger the difference in the %, the better your odds.
Let's say you had intended to sell UOB. Looking at the chart shows that the stock has been rather bullish and trading near its resistance (just 0.8% away) vs the nearest support (3.1% away) . This may suggest for you to start looking at selling some of this stock to take some profits, versus buying the stock.
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