One criteria to consider in a trading plan is - has the share price broken through any resistance level? You can learn more about this from the education modules.

Finding resistance lines takes time and experience, but you will become accustomed seeing patterns in a price movement.

In the chart above a resistance line has been drawn at 55 cents. On two occassions the price has failed to rise above this line. Inbetween these two there is a false breakout. On two other occassions the price almost reached this level before dropping off again.

Before purchasing this stock you would want to be certain that the share price is capable of closing higher than this price. To bring this to your attention, you will set a High Warning Alarm on the chart.

To do this click on High in the alarm section then click on the chart. Then click on Save.

If the share price fails to breach this level, then the share will not qualify as a buy.

Below you can see a chart of the stock a short time later. The resistance break out is quite visible.