Support and Resistance on the 15-Minute Chart

Posted on Wednesday, May 8, 2019 at 6:28 PM

If you know me even a little as a trader, you know how I feel about support and resistance when it comes to trading. I feel knowing that support and resistance have a better chance to keep the underlying advancing gives the trader a much needed “edge.” As traders, we want to put the odds on our side as much as we can to be successful. Counting on support and resistance to hold is just one way to do it.

Many option traders swing trade, which means the expected length of time is anywhere from 2 to 5 days as a rough average. Clearly that is not a hard and fast rule with many trades lasting a lot less or a lot more. So many option traders consider themselves to be swing traders that they pay no attention to smaller time frames like the 15-minute chart, which happens to be my favorite. Take a look at the three charts below.

Each one is a 15-minute chart meaning that every candle represents a 15-minute time frame. Each one has very distinctive potential support (below where the underlying is) and potential resistance (above where the underlying is) levels. How could this not be beneficial for option traders? Whether you are looking for areas to manage the trade-off of for targets or stop loss exits, or mapping out an area for a time spread, this smaller time frame could be just what you need.

Once again, this is just a quick but effective example of how I like to use a smaller time frame despite being a “swing trader.” Adding this to your technical analysis arsenal could really improve and help define your management.

John Kmiecik
Senior Options Instructor
Market Taker Mentoring, Inc.

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