Tackle Today: Favorable Odds | Tackle Trading: The #1 rated trading education platform

Tackle Today: Favorable Odds

Tackle Today Favorable Odds

≈ Is what you get when you enter trades at support and resistance. ≈

Traders,

There are two fundamental reasons why we like to enter trades at support and resistance: favorable odds and favorable asymmetry. Today we’re looking at the first. Tomorrow, we’ll address the second.

You can buy any stock and have a 50% chance of success. Flip a coin. Heads, you’re right. Tails, you’re wrong. I suppose the odds could be worse, but I don’t know that I’d be satisfied with a coin flip as my baseline odds. Instead, I want a higher probability of winning than losing. I want to look for times where the chart suggests the stock is more likely to move in one direction versus another.

This is where support and resistance enter the equation.

There are two times when the odds favor buyers:

  • When price is sitting at support and
  • When it’s breaking above resistance.

Now you understand why the two core bullish patterns we teach in our S.T.E.P. System involve buying an uptrend at support or when it breaks resistance.

There are two times when the odds favor sellers:

  • When price is sitting at resistance and
  • When it’s breaking below support.

Can you guess how this applies to the two bearish patterns in our S.T.E.P. System?

🛑 Upcoming Webinar – Technical Analysis 101: The Basics of Support and Resistance with Coach Matt Justice | January 31st, 2022 at 8:30 PM EST on YouTube

Join us to learn more about two simple, but powerful, concepts in Technical Analysis known as Support and Resistance. Support and resistance not only represent various price levels; they also represent supply and demand on a technical price chart. Traders use these levels for a variety of important reasons, and you should spend some time learning more about them to improve your understanding of these powerful concepts.

In this webinar you are going to learn:

✅ What is Support
✅ What is Resistance
✅ Demand as Support
✅ Supply as Resistance
✅ How Traders use Support and Resistance
✅ Pivot Point Analysis in Support and Resistance
✅ Examples of Support and Resistance

Click on the button below to go to YouTube and set a reminder so you won’t miss it when Coach Matt goes LIVE.


Video of the Day: Jedi Options – What is and how to use Tackle’s Theta Research Spreadsheet

In today’s Jedi Options, Coach Tyler teaches what is the Theta Research Spreadsheet and how to use it.


Chart of the Day: Oil Breaks Out

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On Wednesday, oil prices broke through $86 resistance. Energy stocks followed suit, pulling the energy sector to a 52-week high.


Today’s Line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cashflow Club 8:30 PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.


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Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

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