The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha. Welcome back to the daily call. Today, we’re going to be answering the question, “How can support become resistance and vice versa?” In many classical options trading and stock trading programs, one of the first things that you may learn in a system is to read charts and to try to find levels of support and resistance. Now, many of you guys also know that I'm a big… I don’t know. I’d say skeptic of chart reading because I think chart reading leads to many different interpretations. I could show somebody a particular stock chart and they could draw support and resistance lines completely different than the next 10 people that I show that same chart to. There's a lot of interpretation here, a lot of I think perspective that get drawn into many chart patterns and support and resistance levels. But leaving all that beside, the concept behind support and resistance basically becoming floors and ceilings in stock charts I think is something that has more vali