The Only Support And Resistance Trading Video You Will Ever Need... (Beginner To Advanced Course)
Published: 2021-05-10
Status:
Available
|
Analyzed
Published: 2021-05-10
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The speaker aims to achieve profitability through a trading strategy that wins over 50% of the time with a favorable risk-reward ratio over a large sample size, rather than a 100% win rate.
"I'm not talking about winning 100 percent of the time I'm talking about a money making what uh advantage where we can actually win over 50 percent of the time with more than a one to one rewards risk ratio and over a large sample size we can make money which is the entire point of real trading"
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A method for identifying trend continuation support levels is to mark the highest high achieved since the last time the price broke above the 50-period moving average.
"the market yet again breaks and closes above the highest high since the last break above the 50 period moving average"
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Previous resistance levels become support levels for trend continuation trading when they represent the highest high since the price broke above the 50-period moving average.
"as we break into those new highs we look back at the previous level of resistance right here as our support level and why do we do that because it is the highest high since the break of the 50 period moving average"
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To identify counter-trend resistance, a horizontal line is placed on the highest high, and then the chart is reviewed for the next historical resistance level that the market is likely to reach if it continues to rise.
"we place a horizontal line on that high we look back in historic data and we find the next level of resistance that this market will inevitably hit if it continues higher"
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A specific historical resistance level is identified as a potential area for reversal opportunities.
"this by far is going to be that level that you look for possible reversal opportunities"
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A trading level is classified as an Optimal Trading Zone (OTZ) only if it has been tested multiple times.
"the only time a level is considered an otz or optimal trading zone ... is when that level has been tested multiple times"
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A counter-trend resistance level becomes an OTZ if it has been tested multiple times, serving as both resistance and previously as support.
"this level happens to be not only the next level of resistance up ... but considering that this resistance level has not only been tested once but has been tested twice as support here and also a little level of resistance here"
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To validate a trend continuation level as an OTZ, one must check historical data to confirm if the level has been tested previously.
"in order to classify or validate this as an otz or optimal trading zone the only thing you would do is scroll the chart out and look left and ask yourself was this level tested in the past"
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A trend continuation level is confirmed as an OTZ when it has been tested multiple times as support in historical data, aligning the trader with the trend and structure.
"we had a couple of times this level was tested as support so in terms of training continuation you're aligning yourself not only with the trend of the market ... but you're also aligning yourself with a level of structure resistance and you're also aligning yourself with what we call an otz"
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Using higher time frames to identify OTZs and then switching to lower time frames for entry points significantly increases trading accuracy.
"finding our otcs on a higher time frame and then dropping down to lower time frames to find entries which adds a massive amount of accuracy as well"
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For day traders, when using multiple time frames for support and resistance levels, the advice is to go up one time frame from the trading chart (e.g., 15-minute for a 5-minute chart).
"if you're a day trader look in the top left with me ... if you're trading the five-minute chart ... you're gonna go up one time frame ... for your level of resistance or support I mean the 15-minute chart"
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The speaker uses two simple price patterns, double tops/bottoms and head and shoulders (including inverse head and shoulders), as entry signals within trading zones.
"what I look for in these zones is simple price patterns two simple price patterns double tops and bottoms or head and shoulders patterns slash reverse head what do you call those upside down head and shoulder patterns"
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An entry signal is confirmed by the appearance of a red candle following the completion of a head and shoulders pattern, indicating selling pressure.
"after we've hit this other shoulder like we have right here with this long wicked green candle after that I need to see a red candle my entry was on the next red candle"
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A high-likelihood trade setup is achieved by combining a resistance level, an OTZ (multi-tested level), a higher time frame structure level, and a price pattern for entry.
"we have a market that's in a level of resistance it's not just a level of resistance it's also an otz ... it is also coming to this area on a higher time frame level of structure and now waiting for an entry reason like a price pattern"
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