[isatrader]

Very new to stage analysis but have been over the book quite a bit. Just when I think I know at what resistance level to begin my resistance line I differ from those resistance lines drawn on the watch list. Can you explain at what resistance and what corresponding stage along the MA (30) you determine the resistance line? thanks

The lines I draw on the charts are usually linked to a nearby significant high or low depending on whether we are watching for a breakout or breakdown, and sometimes are more for visual value in highlighting an interesting pattern such as a head and shoulders or cup and handle formation. Generally the last significant swing high/low is what you need to keep your eye on for near term moves though, and if that level coincides with other previous similar levels then it becomes a much more important level to watch in the medium to longer term.