Most people either trust charts completely or dismiss them as astrology. Both camps are missing the point.
Support and resistance are not magic lines on a graph. They represent real people who bought stock at real prices, with real feelings about whether they are sitting on a gain or a loss.
When a stock falls back into a price range where thousands of people bought, those buyers absorb the selling and the price stabilizes. When it rallies back into a range where thousands of people are sitting at a loss, those sellers flood the market and the price stalls.
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CHAPTERS:
00:00 Why Charts Work: The Real Human Reason
00:42 The Field Analogy: Sellers Looking for Buyers
01:00 CNC: A Multi-Year Base Becomes Powerful Support
03:45 Intel: Same Pattern, Same Res...