Look at almost any chart for long enough and you'll notice the price keeps stopping at the same places: it bounces up from roughly the same low, or stalls at roughly the same high. Those places are called support and resistance, and the chart's drawing tools let you mark them yourself.
Equinor over a year. Look for prices where the chart turned more than once: those are the levels worth drawing.
Tip: Round numbers often act as levels, like 100, 250 or 300 kroner. People like to place their orders there.
Next to the indicators on every stock chart is a DRAW section:
You can have up to 30 drawings per stock. When you're signed in they're saved to your account, so they're still there next time and on your other devices. Each level also shows its price on the right-hand scale.
The price rarely turns at exactly the same øre. Think of a level as a zone a little above and below your line. A small dip under support that's quickly bought back is normal; a close well below it is what traders call a break.
A clear close through a level matters more if it comes on high volume (see candles and volume): many traders took part, so the move is more likely to stick. And broken levels often swap roles: resistance that is broken often becomes support, because the traders who wished they'd bought at that price now get a second chance. The same works the other way for broken support.
In a rising stock, each dip often stops a little higher than the last one. A trend line drawn along those rising lows shows the slope of the trend, and acts like a support line that moves up over time. In a falling stock, draw it along the falling highs instead. Trend lines only appear on views that include both of the points you clicked.
Triggers are set from your portfolio and watch the price for one trading day at a time, and your active triggers show up as lines on the stock's chart.
Exercise: The last 20 trading days are hidden. Before you guess, find the nearest price below where the chart has turned up before (support) and the nearest above where it has turned down (resistance). Up or down from here?
Did the price respect your levels or cut through them? Either way, that's the honest lesson: levels show where a reaction is likely, not what the reaction will be.
Quiz: A stock has failed to rise above 250 kroner three times. It finally closes at 262 on heavy volume. What often happens to 250 now?
It can act as support if the price comes back down: Broken resistance often turns into support: traders who missed the break see a second chance to buy at 250.
Quiz: Support is around 95 kroner. Where does a stop-loss make most sense?
A little below the zone, say around 92: If the price closes well below support, the level has probably broken. A little room keeps normal noise from shaking you out.
Open Equinor and draw some levels
Press — LEVEL and mark two or three prices where the chart turned more than once. Then switch to 3M and see how the price behaves around your lines now. Finally, try a ╱ TREND line along the lows of a rising stretch.
Levels are easy to draw after the fact: the lines that worked stand out, and the ones that didn't are forgotten. Before a level is tested, you can't know whether it will hold. Also, because so many traders put their stop-losses just below obvious support, a quick dip through it can set them all off before the price recovers. Treat levels as places to pay attention, not as walls.
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