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Support & Resistance Trading Strategy Was Hard, Until I Understood This — Transcript

by fxalexg · 4,228 words · 570 segments · language en · Watch on YouTube

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0:00support and resistance once you master
0:02them making money in the markets becomes
0:04extremely easy however I have discovered
0:07that the mass majority of Traders out
0:09there have no idea how this works they
0:11have absolutely no idea how to interpret
0:13them and even less how to use them in
0:15their advantage to make money and in
0:17this video I'm going to teach you the
0:19most basic thing that every single
0:21Trader should know how to use support
0:23and resistance to your advantage I'm
0:25going to give you examples of Trades
0:26that I have personally made numbers like
0:29these and even these by simply using
0:31support and resistance the right way so
0:33we have to really understand what does
0:35support and resistance mean so let me
0:36explain support and resistance are areas
0:40where we are waiting for the market to
0:41get there this is where the areas
0:43consist of buyers and sellers once price
0:47gets to these areas so what support
0:49looks like is once price is declining
0:52into a level of support and then the
0:54buyers come into the market and then
0:56push price to the upside and then
0:58resistance is when when price is heading
1:01to the upside it hits a resistance level
1:04then sellers come into the market and
1:05then take price to the downside it is
1:07literally as simple as that it's exactly
1:10what it said in the name support is When
1:12Buyers come in and then hold price up
1:15and then resistance is when sellers come
1:17into the market and push price down so
1:19now that we understand what is a support
1:20level and what is a resistance level why
1:22are these areas so important why does
1:24everybody talk about it and why are they
1:25so important for the basic key
1:27foundations of a successful Trader and
1:29there's so important because these are
1:31the areas where price can have a
1:33reaction from in your favor without
1:36having any obstacle in its way not
1:38letting it get to your takeprofit faster
1:40than it should be let me explain so
1:42let's pretend that price is heading to
1:44the downside and we have a support level
1:47down here we are destined to wait for
1:49price to come to this support level and
1:51then have a reaction from it so then we
1:53head up to the upside this support level
1:56once price gets here and we have a
1:58rejection this support level is going to
2:01give us the impulsive move for price to
2:04continue to head to the upside without
2:06having any slow down because we have
2:08reached the level of support so now it's
2:10going to have a reaction from it and
2:12head to the upside faster than if it
2:14were to not be at a support level and
2:16then the resistance is literally the
2:18complete opposite price is heading to
2:21the upside and then we are waiting for
2:22price to hit the area of Interest or the
2:25zone as resistance where there's a lot
2:27of sellers in the market once price hits
2:29this resistance level then we use it as
2:32a resistance to then head to the
2:34downside in our favor faster than any
2:36other way because we are going with the
2:38sellers from the market and support and
2:40resistance might also be known as area
2:43of Interest so let's say you're looking
2:45to buy you would have the support area
2:48as your area of interest and if you're
2:50looking to then sell your resistance
2:53would be your area of Interest so area
2:55of interest can go for both support or
2:57it can go for resistance it just depends
2:59for what you're looking for if you're
3:00looking to buy then you have a support
3:03as your area of interest if you're
3:04looking to then sell then you have your
3:06resistance as your area of interest and
3:09to make all this super simple it's
3:11literally the areas where a bunch of
3:13buyers and sellers come into the market
3:15and whoever wins then pushes price in
3:18that favor so if you're at a support
3:19level the buyers win they push price up
3:21if you're at a resistance the sellers
3:23win they push price down now are all the
3:25supports and resistance the same and the
3:27answer is no they're actually completely
3:29different
3:30support is used as support and
3:33resistance is used as resistance you
3:35cannot use them against each other you
3:37can't use a resistance level to then buy
3:40you can't use a support level to then
3:42sell almost think about it as a
3:45resistance level as the roof and if this
3:48were to be the roof how are you going to
3:50buy right into the roof like let's say
3:52you are 6 fet tall and you have a 7t
3:55roof you can't jump cuz you're going to
3:57hit your head that's not the goal let's
3:59say you're in a twot pool you can't dive
4:02into a twoot pool because you're going
4:03to hurt yourself so you can't sell into
4:06support you need to use them as what
4:08they are supposed to be if you are in a
4:10twoot pool this is where then you jump
4:12from if you're at a resistance then this
4:14is where you then go down from so now
4:16that we understand that we have
4:18different types of areas of Interest we
4:21have psychological areas of Interest we
4:23have strong areas of Interest we have
4:25weak areas of Interest all of this Falls
4:28inside the area interest category and
4:30it's actually very simple to understand
4:32let me explain let's first start off
4:34with what is and what is not a support
4:38and resistance so first of all very
4:40simple example of a psychological level
4:42is literally you go to the Chart you
4:44find whatever currency Peri your trading
4:46and then you look at the numbers that
4:48are to your right hand side and there
4:50you find any round psychological level
4:52for example
4:5417,000 1.8 th000 1.6 th000 any single
4:59number that is a round psychological
5:02level is also considered an area of
5:04Interest I personally like combining
5:07both but I will show you a little bit
5:08more of this later in the video when we
5:10actually get into the charts next is a
5:13strong area of Interest a strong area of
5:15interest is when you have more than
5:17three to four taps at that time frame in
5:20that area of Interest the stronger the
5:22area of Interest the more Taps meaning
5:25the more rejections meaning the more
5:26it's respected meaning once price gets
5:29that area the odds of you winning that
5:30trade are a lot more in your favor
5:32because in the past it's done it more
5:34times than not and the further you go
5:36back into the chart and the more Taps
5:38and rejections it has the better next we
5:40have weak area of Interest a weak area
5:43of interest is something that it has
5:44under three rejections from that area
5:47which is not an ideal area because
5:49there's not much data indicating that
5:51once price gets there it's going to have
5:53a strong rejection in your favor with
5:55your trade and lastly one of my
5:57favorites that I use every single day in
5:58trading is is the break and retest so
6:01it's actually way simpler than you can
6:03ever imagine break and retest literally
6:05consist of price breaking and then
6:08retesting the area it's that simple
6:10let's say you have a resistance level
6:13and price gets to it and you don't have
6:15a rejection so not enough sellers come
6:17into the market to push price down price
6:20then breaks that area it come back it
6:23retests it it uses it as support and
6:26then it heads to the upside it's
6:27literally as simple as I'm explaining it
6:29but I'm going to get into more detail
6:30now when we get into the charts so what
6:32is a support a support is an area that
6:35has more than three touches now an area
6:38support can be found on any single time
6:41frame can be found on the 1 hour 4H hour
6:45daily weekly on any time frame obviously
6:47the higher the time frame the more
6:49respected this support level will be
6:52because if price gets to a daily support
6:54level and it's had let's say five
6:56rejections for example this is good
6:58because the daily time time frame takes
7:00a lot longer to move so it's a lot more
7:02respected than let's say a 1H hour area
7:05of Interest or a support level with five
7:08touches because the 1 hour has a lot
7:10more movement and it could break and not
7:13respect that level compared to the Daily
7:15time frame so a support level is One's
7:18price has more than three Taps of price
7:21being held above that support level as
7:24you can see in this example right here
7:26so now what is not a level of support
7:28and it's lit
7:30the complete opposite of what is right
7:31here a level of support is price that
7:33does not have more than three rejections
7:36it's that there's no clear indication
7:38and clear rejection from this level of
7:41support if price is just breaking above
7:43and under the zone and not respecting it
7:46to the T in a very tight and square Zone
7:49this is not a support level and will not
7:51be respected so what is a resistance
7:53level literally the same thing just flip
7:56the chart around once price gets to an
7:58area and it has has more than three
8:00touches and it's a very tight Zone
8:02that's a level of resistance and what is
8:03not a level of resistance the same exact
8:06thing as support an area that price is
8:08constantly breaking through not
8:10respecting it and no clear indication
8:12that it is respecting that tight box of
8:14the zone so now let's actually get to
8:16the charts where I'm going to show you a
8:17strong level of support and resistance a
8:20weak level of support and resistance a
8:22strong level of a psychological area and
8:25then a breaking retest how I personally
8:27use it every single day to make a bunch
8:30of money in the market so let me show
8:31you guys so let's get started here on
8:34the charts so this right here is the
8:36Japanese candlesticks form of reading
8:38charts you guys can see right here this
8:40are the Candlestick patterns that you're
8:43seeing currently right now in the market
8:45and we're going to set up multiple
8:46examples on what is a strong level of
8:50support and resistance so before we go
8:51into the candlesticks let me just get
8:53started with the line chart so you guys
8:55understand very clearly so in this
8:56example right here I'm going to be
8:57showing to you guys what is a very clean
9:00and clear level of support so this is
9:03what we would call an ideal level of
9:06support So as you guys can see right
9:08here this Market is obviously headed to
9:10the upside but there is a level of
9:13support right in front of your face and
9:15as soon as you spot it you can see that
9:17it is a level of support because it has
9:19more than three touches so this right
9:22here is considered a valid level of
9:24support not a strong one but definitely
9:27a valid so as you can see right here we
9:29have one tap we also have a second tap
9:33and then this would be our third tap
9:36right here making this a valid level of
9:39support so now we now that we know that
9:41once price comes back into this area we
9:44could be interested in buying a trade
9:47because we are because we're having a
9:48high probability of this trade heading
9:50to the upside from this level of support
9:53because we've done it three times in the
9:54past so the odds of it doing a fourth
9:56are very high especially if the trend is
9:59heading to the upside so for this
10:01example right here this is what we would
10:03consider a valid level of support and we
10:06would be taking the trade on the fourth
10:09touch of the level of support you're not
10:11looking to take the trade on the
10:14potential reaction from the third tab
10:17you guys need to be very key with this
10:18be very selective once you have a
10:20confirmation rejection as the third one
10:23we would then be entering on the fourth
10:26one as our area of Interest or level of
10:29support on the trade so now that we
10:30understand what is a valid level of
10:32support what is a valid level of
10:34resistance it is literally the exact
10:36same thing just flip it around so we're
10:39going to do a quick flip around right
10:41here which we're going to invert the
10:42scale and as you can notice it's
10:44literally the same exact price all we
10:47simply have done is invert the scale a
10:50lot of you guys out there might be
10:51better at identifying support or
10:53identifying resistance if you ever have
10:54any trouble right click on this line
10:57right here and you just simply click
10:59invert scale so for this example right
11:01here it's the same exact thing once you
11:03have one one tab two tab three tab we'
11:06be looking to then sell on the fourth
11:08top because the odds of it going down
11:10from here a lot higher because we've had
11:12multiple rejections from this area so
11:14this is what we would consider a valid
11:16area of interest because it has had more
11:19than three Taps from the level of
11:22resistance so this is a valid and
11:24respected level of resistance so now
11:27moving on we understand what is a valid
11:28level of support now I'm going to be
11:30showing to you guys what is a strong
11:32area of support this is what you want to
11:35see the more of this that you see the
11:37better the odds that you're going to win
11:39the next trade so this right here is our
11:41same chart that we were looking at
11:42earlier and let's just draw more price
11:44through it let's just simply come in
11:46through here and let's just look messy
11:49how the charts would look to a newb and
11:52it'd be a bit confused right so this
11:55right
11:56here is what we would consider a strong
11:59area of Interest why because we are
12:02having more than one tap so for this
12:05example you can see how we have one tap
12:08right here we then have our same exact
12:12second and third tap and you can tell
12:15right here things get a little bit
12:16different now we are having a resistance
12:20be considered a tap and you may be
12:22asking yourself why and this is because
12:25it is confirming that this is a strong
12:28support support level used as resistance
12:30in the past and whenever we are under
12:33it's used as resistance whenever we are
12:35above is used as support So for this
12:38example we have 1 2 3 4 5 six rejections
12:44from this level of Support also known as
12:48area of interest and the Simplicity of
12:50it is that the more Taps the better the
12:53more rejections and reactions you have
12:55from the Zone the better it's meaning
12:57that it is more respected if you can go
12:59up to 20 30 rejections the better that
13:02means that you are having a very strong
13:04and valid level of support now do the
13:07resistance Taps count as Taps towards
13:11the points of the level of support and
13:14the answer is yes because this is a
13:16respected movement in price and data so
13:19whenever price is under it is rejecting
13:22and whenever price is above it is
13:24rejecting and for this example right
13:26here we are clearly above the level of
13:29support or the area of Interest so the
13:31odds of it going up are very high
13:33because whenever we are above we're
13:35rejecting and whenever we are under we
13:37are rejecting so for this example the
13:39odds of it going up are much higher than
13:42going down simply because we are above
13:45it so the more Taps you get into the
13:47area the better the tabs could be under
13:50it or it can be above you just have to
13:52make sure they are tight in this Zone
13:55this right here would not be considered
13:57a top this is is way too far from the
14:00area of Interest so this would not be
14:02considered six Taps this would only be
14:05considered four taps towards the area of
14:08interest because there is clearly only
14:10four rejections so the more Taps that
14:13you get of this area the stronger and
14:15the better and the odds are you
14:17succeeding and making money with this
14:19trade now what is a very strong level of
14:22resistance the same exact thing just
14:24flip it around we're going to right
14:25click on these buttons here going to
14:28Simply click invert scale and it is the
14:30exact same thing the more Taps we have
14:33of this area now this is a area of
14:36interest to then sell because we are
14:38obviously in now a downwards market so
14:40you can see here and now since we are
14:42under this area we're going to be
14:44looking to then sell when we are above
14:48this area we're looking to buy when we
14:50are under this area we are looking to
14:52sell it is literally that simple you put
14:54the Zone the more Taps it has the
14:57stronger if you are above that zone you
14:59like to buy if you are under that zone
15:02you like to sell it's that simple next
15:04I'm going to be talking to you about the
15:05round psychological areas of Interest or
15:08support and resistance a lot of people
15:10use this more on the lower time frames I
15:12personally use it in correlation with
15:15the area of interest on the higher time
15:16frame but more on that later in this
15:18video and it's very simple this is
15:20probably the simplest thing I can ever
15:21explain it's literally around
15:23psychological level so you can get a
15:25line and throw it anywhere in the chart
15:27literally I can just look random just
15:29boom just throw it in the middle of the
15:30chart and your goal is to get this
15:33number right here as close as you can to
15:35every 500 so for example this right now
15:39is
15:40171 441 if you simply delete the
15:44441 and you put a 5
15:4871500 that is considered around
15:51psychological area of interest can also
15:54come into here just throw it randomly
15:56double tap the chart and let's just to a
15:58round psychological level
16:02171,000 we can also come into here again
16:05and put one at down here doesn't matter
16:07throw it anywhere in the chart for
16:09example right here the the nearest 100
16:11is
16:12172 and now this is the area of Interest
16:16a lot of people use this because Banks
16:18and institutions they close their
16:21positions at these round psychological
16:23levels think about it if you're going to
16:24be closing multi-billions of dollars
16:27you're not going to do it at a random
16:29price point of let's say 1715 32 makes
16:34no sense you want to close all of your
16:35positions on around psychological level
16:38like this one so Traders use that in
16:39their advantage because now they can mix
16:42that with the level of support and
16:43resistance and at those areas a lot of
16:45positions are being closed because banks
16:48are liquidating their orders and that's
16:50where the sellers come into the market
16:52and then move price down so let's say
16:53you're having a movement to the upside
16:55like this all the banks close their
16:58position so now the sellers come into
16:59the market and boom it pushes the price
17:01down and once price comes down here and
17:04bankers liquidate all their positions
17:06new buyers come in and then push price
17:08to the upside so this is just an added
17:11Confluence that it is to support and
17:13resistance so now I'm going to show you
17:14some examples of a strong level of
17:17support or resistance on the Candlestick
17:19chart obviously we're going to be
17:20trading on candlesticks I just was
17:22showing you guys very simply what it is
17:24like on the line chart so let me show
17:26you what it looks like on the charts so
17:27this right here this is what is
17:28considered a strong level of support and
17:31resistance so let me show you how I
17:33would actually mark up the points or the
17:36TOs of this area right here so for
17:39example this right here would be one tap
17:43this right here would be a second tap so
17:45then this would be a third tap this
17:48right here would be a fourth tap right
17:51here this right here would be a six s
17:54and then eight so all of these right
17:57here well then nine we can't miss this
17:59last one right so this right here is a
18:01strong level of support and resistance
18:03and you can almost tell every single
18:06time we get to this Zone we have a
18:08reaction immediately when we're above
18:11and immediately when we are under now
18:13you may be asking yourself why that is
18:15because we are on the daily time frame
18:17the higher the time frame the more
18:19respected the zone is going to be
18:21literally every single time we come to
18:24this one we're above we head to the
18:25upside if you notice here when we we're
18:28above we reacted but then we completely
18:30broke through it after and then we
18:32rejected to head to the the downside we
18:34came to it again rejected to the
18:36downside so whenever price is under it's
18:39going to then sell whenever price is
18:41above it is going to then buy the higher
18:43the time frame the better now let me
18:44show you what is a weak level of support
18:47and resistance and how it is not
18:49respected so this right here is not a
18:52strong level of support or resistance as
18:55you can see there's maybe one clear
18:57rejection maybe two of you want to get
19:00pushy and then three it's not ideal
19:03because they're not clear points and
19:05look how something so simple as moving
19:07this box up or down can make a complete
19:10and total change on the area of Interest
19:12so as you can see right here it doesn't
19:14look clear doesn't look like there's a
19:15lot of nice rejections if I simply move
19:17this box slightly down you can see how
19:21now everything completely changes you
19:23can see how now we have 1 2 3 4 4 5 6 7
19:298 9 10 Taps from this area that is all
19:33you guys are missing just a little bit
19:34more of clarity and looking at the
19:36markets in a very simple and effective
19:38way so you can spot areas of Interest
19:40like this all of the time this is a
19:42great example whenever you we are under
19:44we are selling whenever we are above we
19:47are buying whenever we are under we are
19:49selling this is a classic strong level
19:52of support that is also used as
19:55resistance so as you can see support and
19:57resistance is is not anything difficult
19:59or something you should be scared of in
20:01the market it's something you need and
20:02as you can see in that last example
20:03right there the simpler you make it the
20:06better and you can see how something so
20:08small by simply moving the are of
20:10interest just down by a little bit you
20:12can have so much more clarity and
20:14looking into the market and that is what
20:16I do with all of my students inside the
20:18set and forget where they're making
20:19anywhere from $1,000 to
20:21$11,500 a week as a beginner set and
20:24forget Trader they come not
20:26understanding anything and by simply
20:27getting on the weekly calls with me and
20:30all of the other students I bring so
20:32much Clarity to any questions or
20:33concerns you may have because it's what
20:35I do I change people's life with set and
20:38forget that's making students have
20:39anywhere from ,000 to $11,500 a week in
20:43the first 3 months using the set and
20:45forget strategy if you want to know more
20:47about what is set and forget and how
20:49would this even make sense for you I
20:51have a link in the description below
20:52where it explains to you what set and
20:54forget consists of completely cuz I know
20:57it might seem intimidating seeing
20:58students leaving their jobs and making
21:00anywhere from $1,000 to $11,500 a week
21:04but it has completely changed my life
21:06and taking me from Dunkin Donuts to the
21:08life that I'm living like today so you
21:10want to know more about what set and
21:11forget is and how you can use it to
21:13either make an extra side income from
21:15Trading or to become a full-time Trader
21:17watch the link in the description below
21:19there's a video there for you that
21:20explains everything about what set and
21:22forget is and how you can become part of
21:23the setting forget family thank you guys
21:25for watching the video all the way to
21:26the end make sure you like comment and
21:28subscribe and I'll see you guys in the
21:30next video

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