So if you see the a trend where the resistance is lets say $10 and the support is $4. Today you decide to look at the stock and see where it is. You see that it is at $5 right now. Would you say you should buy some shares and when it starts to get close to 10 sell..?
If your stock is at $5 and the support is at $4, then use $4 as your stop loss level.