What you are looking at, is the actual technical analysis I did on a stock, that made me 1000 percent profit. In this video, I’m going to show you how I was able to catch this big move, using simple support and resistance. These lines you are seeing right now, is all I drew to make 1000 percent profit. Yes, these weird lines. Let me show you how I was able to find these strong resistance lines So you can make more money as well.

On 11 march 2020, when most stocks were falling, I was looking for a stock that was moving up. In other words, I was searching for a stock that was giving a pullback. After looking at all top 50 stocks that form the index, I found this one.

This stock was up around 5 percent that day, and Here’s how I drew the strong resistance lines.
To draw strong support and resistance lines, you have to select your entry time frame first. Entry time frame, is the time frame that you trade on. In this case, I was looking at 30 min timeframe.

Then, to get a big picture of the price movement of the stock, we will switch to a higher time frame. For example, If you are trading on a 5 min, your higher timeframe will be 15 or 30 min. In my case, since i was using 30 min timeframe, I will switch to 4 hours.

We will use this timeframe, to find areas that price has reacted to strongly, or was not able to cross easily. Here’s an example. Price touched this area multiple times, but was struggling to cross it. When it finally crossed it, it made a big move. Since, price reacted to this level, and was not able to cross it even after touching multiple times, we will draw this area as strong support and resistance level. We are also going to expand it a little forward. Here’s another area, where price touch multiple times. We will also draw this as a support and resistance. Just like our previous area, we will extend this one too.
Remember, I’m drawing area, and not a single line, because support and resistance, is an area where price is expected to react strongly. It is not a single line on a chart. You will see many professional traders draw it as lines, because lines, are easier and faster, to draw on a chart. But they are fully aware that support and resistance is an area.

But since market was very volatile due to corona virus, selling here directly was very risky. Price can open with a big gap up, and I will lose a lot of money. So instead of selling this stock directly, I bought a put option of the same stock. I bought a put option at strike price of 210. Stock options are really complicated, I won’t explain it in detail in this video. But in simple words, I bought Put options so I can limit my risk. On 11th of march, it was worth around 10. My stop loss on this option was set around 5. Just in case, if price made a big move up.

Luckily it didn’t. Next day, the stock opened with a gap down of 5 percent, if i remember properly. Don’t quote me on that. But it was down. And my analysis was correct.
In next few days, stock made a big move down, and kept going down. The option value went up, and kept going up. I sold at around 59 point something, and booked my 1000 percent profit. As of making this video, price is at 82, I could have made more profit, but 1000 percent is not bad. And the technical analysis was spot on.

That’s all there is to it. That’s the way to draw strong support and resistance that work. But nothing works 100 percent of the time. Sometimes you get false breakouts. Just like any trading indicator, support and resistance have a higher probability of working, but never 100 percent. And that’s not a bad thing at all. If you book more profit than your risk, all you need is a win rate of 50 percent to make money.

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