How to Chart

When plotting key Support and Resistance for the first time it is imperative to zoom out to the higher time frames. Levels that can be visually (and easily) seen at these levels will be much more significant. Remember, if you have to strain your eyes to see it, it is likely not a key level.

I personally use the color blue for resistance (like the sky above) and orange for support (close to a ground color). You can choose as you like, or stay with one color since support often flips to resistance, and vice versa. I will also adjust the thickness of my lines depending on which time frame they were drawn. For example, a thicker line for a level drawn on the weekly vs a thinner line for the daily. Intraday levels can be drawn, such as pre-market highs and lows, but they hold less significance. It is also crucial to remember that S/R acts more like an area than an exact price, so price-action may go above resistance temporarily and then still reject, or the reverse for support. This is what is often referred to as a "fake out" or "liquidity grab."

It is also important to watch for pertinent chart patterns while charting, such as head & shoulders, ascending/descending triangles, rising/falling wedges, bear/bull flags, etc. Also, mind your gaps. Gaps tend to be filled at some point in a stock's lifetime, although some are filled quickly whereas others may take years to fill.

Good luck, and God bless!