文档介绍：Lesson #3 -- A Swing Trader's Support and Resistance Secrets
In our last trading lesson I did my best to acquaint you with trends and trendlines. I started by
showing how the simple labeling of peaks and valleys could help you determine if a stock was in an
uptrend or a downtrend. Recognizing the trend of the stock, you saw, was the key to profitable swing
trading.
I then introduced you to a few simple rules one should follow when drawing the trendline. These are
rules I use every time I draw a trendline on a chart and they are vital for keeping me on both the right
side of the market and on the right side of any given trade. Along with this, I taught you the
importance of not fighting the trend. One of the most profitable swing trading strategies I know of
involves buying on the break of the downtrend line and taking profits on the break of the uptrend line.
Finally, for those interested in more practice, I challenged you to analyze a historical chart of KLA-
Tencor (KLAC) to gain practice with drawing trendlines. I will present you with my interpretation of
those trendlines at the end of today's trading lesson.
The KLAC chart will also serve as our focus for today's discussion of support and resistance.
Although the KLAC chart below covers almost the same period as the one I used for trendlines, I
have made some minor adjustments such as adding moving averages, reducing the number of
indicators and enlarging the chart size.
Instead of labeling the chart with "P" for peak and "V" for valley, I have now marked the key highs
and lows with "S" for support and "R" for resistance. The chart covers approximately nine months of
KLAC trading history. Please note that I've numbered the support and resistance points from R1 to R9
and S1 to S10.
The discussion of support and resistance in today's trading lesson of necessity contains an extremely
detailed analysis of KLAC's chart. It is almost imperative that you print out today's trad