TA Challenge: How to draw support levels like a pro?

Support and resistance are two basic concepts in technical analysis, which can help traders gain insights into the strength of a price trend. Through this challenge, you can get to know the support level and the myth behind it.

A support level is a price below which a stock doesn't tend to fall over a given period. Do you know how to plot it?

Think of the support level as a straight line connecting two or more low points. Use a single line when the price level is almost to the pip and two lines when the price bounces off an area. Then, highlight only the critical support of a chart by adding lines to connect the clear swing lows.

Examples of how to draw a support level:

Step 1: Select a specific stock.

Step 2: Find the low points in the price trend.

Step 3: Adopt the charting tools to identify the support level.

TA Challenge: How to draw support levels like a pro?

A stock breakdown is a breakout to the downside.

If you still find it challenging to draw trendlines, we've prepared a line drawing guide for you: How to draw stock trendlines on moomoo?

Now, show time! Let's draw a chart and get rewarded: TA Challenge: Chart to find breakdown stocks

Rewards: $5 Stock Cash Coupon

Draw a chart to find the breakdown stocks. Post your results in #TA Challenge, and don't forget to add the stock ticker to be qualified for the rewards!

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more