Drawings


Drawings allow you to visualize support and resistance levels for stocks.

Some traders buy a stock when they think it has found a support level (a price at which they think it won't drop any further) and sell it when they think it has encountered a resistance level (a price where they think it won't rise much further). Traders shorting the same stock would do the opposite: they would enter a short position when they believe the stock has found a resistance level, and exit the short position when they think it's found a support level.

Many traders make trading decisions based on where they see support and resistance levels forming, and watch for “breakouts,” which are decisive moves made by a stock through a support or resistance level.

Several technical drawings rely on numerical sequences that were first described by the 12th-century mathematician Leonardo Fibonacci, and are therefore named after him. They give you the ability to use complex mathematical ratios, sequences and formulae in an easy-to-interpret drawing on a stock chart.