TD Ameritrade is used to trade financial assets, and understanding how to draw support and resistance lines in thinkorswim, its electronic trading platform, is vitally important to your trading success. It is geared toward self-directed stock, options, and futures traders. Thinkorswim (TOS) has different versions so that it can make it convenient for day traders to do it anywhere. TD Ameritrade has a different range of trading platforms; desktop, web, and mobile. These platforms are known to be simple and easy to use. I will go over the desktop version with you when teaching you how to draw your support and resistance lines in thinkorswim.
Before you can start day trading, it’s important to get the basics down, so you can be successful. Now that you know the thinkorswim platform that you will use, it is important to learn how to use it. Think of it as building a home, if the foundation is not stable then the home will fall apart. So, in order to keep your structure from being weak; I will walk you through how to draw your support and resistance lines in thinkorswim. This will be the infrastructure you need to create the base needed to start building your forever home.
Support and Resistance Lines
You will now start working on your framework for the support and resistance levels on thinkorswim by learning how to draw support and resistance lines In thinkorswim. Once you log into your thinkorswim account, you should see your workspace appear. To get to your workspace, you’ll click on setup in the top right-hand corner, and then it will generate an image similar to the one below. You will then wait until your candlesticks start to form before you can start labeling your chart. Support and resistance levels are significant points in time when the forces of supply and demand meet. Once these levels form on your chart, you can then start to draw your resistance lines.
The time is now 9:43 a.m. EST when enough candlesticks have formed where you can start to label your support and resistance lines. In order to identify the resistance level, it will have to be where green and red candlesticks are at the highest price agreement. Meaning the top of the green and red candlestick are in sync at the time you started to label your chart; it is circled in yellow in the image below on the thinkorswim platform.
Drawing Your Resistance Line
Time to start working on the plumbing and electricity for your forever home. You will now look at your 1-min chart on the top left-hand corner and look on the baseline of it where the time is labeled; you will see a ($) next to the words drawing set. You will click on it and then go back up to the top of the two candlesticks at 335.46. With the left side of your mouse, you will click on the left side of the two candlesticks. You will then just move the mouse to the end of the 1-min chart and click again; it will create a line. It should look like the image below.
Now you will click on the ($) on the drawing set and a bunch of other images will pop up in a window. Select the rectangle image and then go back to your resistance line on the 1-min chart. You will now need to click underneath the resistance line to start the rectangle forming. Just like how you did with the resistance line, you will follow it to the end of the 1-min chart and click again .10 under; so, it will read 335.36. Now click on the rectangle and edit properties; change the color to red.
Drawing Your Support Line
Now that we have the resistance line taken care of, let’s work on the insulation, drywall, and flooring of your home. Which would be using what you just learned by creating your resistance line and create your support line. Instead of looking at the top of the chart, you look at the bottom of your 1 min chart. You will need to identify the green and red candlesticks that are in the lowest price agreement. You will now draw the line at the base for support; instead of the top like you did for your resistance line. Your chart should now look like the image below; support line at 335.03.
You will now go back to the ($) and click on it and select the rectangle symbol once again. This time, instead of clicking under the line, you will click above the line and set your triangle .10 above; so, it should be at 335.13. Once this is done, you can click on the rectangle and select edit properties from the options. You will then select the color green, and you will now have an image like the one below. In which both your support and resistance levels are labeled and ready to use.
Inspection of Your Support and Resistance Lines
You know have the major elements for your home checked off; let’s move on to the inspection of the home. Some little home maintenance things to bring up, so you can patch it up along the way. As the candlesticks continue to fill your chart, you will notice your rectangles will get smaller. You will also the rectangles will not keep extending on their own; the same thing applies to the support and resistance lines.
I like order in my house, so to fix this all you have to do is click inside the rectangle and from the drop down select activate drawing. This will cause the rectangle to let you drag the right until the end of your chart. For the resistance line same thing you right click on your mouse when the options come up you will select edit properties. You will select price level and a box will populate where you can click on the right extension. Selecting the option (on) will make the price line continue to keep growing as the chart grows. An example is presented for you below; highlighted in yellow.
Summary: How to Draw Support and Resistance Lines in thinkorswim
You were able to get the framing, plumbing, electric, insulation, drywall, and flooring done. You also managed to pass inspection, so you are well on your way to making this a home ready to grow in. It is important to constantly practice and used a tested method to learn how to read what is on your chart. With your resistance and support lines identified, you can then execute proper entry and exits on thinkorswim.
My goal has always been to help as many day traders achieve their personal financial goals, whether they are novice traders or experienced traders. Learning how to label your resistance and support levels on think or swim brought you to a whole new level. However, it is only the home you have acquired at this point. With my program, you can learn how to turn this home into your forever home. Where you will be profitable for at least 80% if not more of your trades.
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Maurice Kenny has helped over 600 people become financially free through one-on-one coaching, mentorship, and options trading strategy. Many of these new traders are now full-time traders, and they all started by watching his 1-hr webinar.
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