What may seem confusing to some is actually quite simple when you think about it and give it some practice, finding support and resistance levels. And what’s better is it is easy enough for anyone to do it before they sign off for the night or even the morning of before the market opens.

Finding support and resistance levels is what we do here in these videos each and everyday, so at the very least, if you’re not using these videos to make a trade, you can use these videos to practice how to find these key levels.

First, as we look at the chart for KKR (KKR), the stock on watch today, you’ll notice one of many things. The first thing you need to consider is the timeframe you’re looking for these levels on. For myself and for many successful traders, we look at the higher timeframes. You can go to the weekly and monthly to get a better sense of where we are in an overall trend, however, when looking for key levels to trade, I typically zoom in just a bit to the daily.

Remember, if you can barely see the levels, chances are the market can’t either and that level won’t be effective for your trade. So, when we look for these levels, we are usually using the daily time frame.

From there, we look for price points where price has reacted to many times in the past. For KKR, that price you can see pretty easily at around 58, that is where we draw a line in order to help us map out the stock’s price chart. Then, you have to consider where price is in relation to that price or your line in order to see if it is now support or resistance.

If price is holding above this line, it is considered support. If it is trading below it you know it is now resistance. Take into account our system, calls at support and puts at resistance and you have just added one more critical piece to the puzzle.

That’s because when price is falling toward a key level, the highest probability trade is a bounce, if it fails, we quickly exit the trade. The opposite is true when a resistance level approaches.

With respect to the current Daily Smart Report trade we are looking at below, 58 is currently acting as support… until its not. That means, once it fails, it then becomes a resistance level that we can pay close attention to in order to see if price will then reject off it after an attempt to break the level to the upside. These levels give us important spots to pay extra attention to so we have the market mapped out.

Seeing as how KKR’s price closed right at this level, a break of this level could…

Watch the full video at WEALTHPOP.com