Step 3 Knowing where the stock will bounce - Support and Resistance

For Conservative credit spreads the most important thing to note is where the support and resistance of a stock is. I am going to let you read what someone else wrote first before I delve into this subject because it is extremely important and I want you to have a good grasp of the concept from different people - so do some homework and read up on Support and Resistance -

Go to -

Stock Charts Support & Resistance

Incredible Charts Support and Resistance

Investopedia Support and Resistance

MetaQuotes Support and Resistance

These are not links to promote these other websites but instead good explanations of support and resistance that I have found on the web. The best and most detailed is the Stock Chart explanation but many people will need another perspective. In future posts I will be giving other examples of more complex support and resistance in terms of channels, so stay tuned.