The Best Support and Resistance Trading Strategy — Transcript

Full transcript

1. 0:00Most traders lose money in the markets
2. 0:02because they don't understand one thing.
3. 0:04And that one thing is super super
4. 0:07simple, but it has a touch of complexity
5. 0:10that you don't fully understand yet. And
6. 0:13that one thing is resistance and
7. 0:16support. In this video, I'm going to
8. 0:18explain it in the most easy to
9. 0:20understand terms, and it will unlock
10. 0:23everything in your brain about day
11. 0:25trading. Everybody draws these lines on
12. 0:27charts and hopes that price bounces off
13. 0:29of them. But let me ask you this
14. 0:31question. If support is so strong, why
15. 0:34does it break all the time? If
16. 0:36resistance is so powerful, why do fake
17. 0:38outs just completely destroy your
18. 0:40account? It's not your fault. It's just
19. 0:43bad education. You didn't create the
20. 0:45foundation that you needed. I promise
21. 0:48you, by the end of this video, you will
22. 0:50never look at price action the same
23. 0:52again. Let's break this down in plain
24. 0:54simple English. Support is like the
25. 0:58floor. Resistance is like the ceiling.
26. 1:02Price bounces between them up and down.
27. 1:06It's not magic. It's not random. It's
28. 1:09not just lines. Now, let's dive deeper.
29. 1:12Support is where a lot of people in the
30. 1:14past have bought. So when price comes
31. 1:18back to that spot, buyers step in again.
32. 1:22Resistance is where a lot of people
33. 1:24sold. So when price gets near that
34. 1:27again, sellers try to stop it. It's just
35. 1:30people remembering the pain or profit
36. 1:33and reacting. Now let's get into why
37. 1:36resistance turns into support and vice
38. 1:39versa. Okay, so let's say you have
39. 1:41resistance. Price hits this level and
40. 1:44drops. Then one day, boom, price breaks
41. 1:48through it. Guess what happens next? As
42. 1:51the price comes back down after breaking
43. 1:53out, it becomes support. Why? Because
44. 1:58people who missed the move originally
45. 2:01when it broke out, now they want in. And
46. 2:04people who sold there are now stuck and
47. 2:08want out. And smart traders, they wait
48. 2:11for a retest to that level and buy. This
49. 2:15is called a flip. And this flipping of
50. 2:18levels is how market structure is born.
51. 2:21Most people treat support and resistance
52. 2:23like exact prices. Like I'll buy at
53. 2:27exactly 1.1023.
54. 2:29But price doesn't care about your
55. 2:31number. Support and resistance are
56. 2:34zones, not lines. They only matter if
57. 2:38lots of people care about that zone. If
58. 2:41no one cares, price slices through it
59. 2:44like it's not even there. And if you try
60. 2:47to trade every support bounce or every
61. 2:49resistance touch, you will lose. So
62. 2:52here's the rule. Don't trade the level.
63. 2:55Trade the reaction at the level. Now,
64. 2:58this is how to actually use support and
65. 3:01resistance properly. And I'm going to
66. 3:03give you a simple three-step method.
67. 3:06Step one, look at where the price has
68. 3:09bounced or dropped from before. These
69. 3:12are zones of interest. Mark them with a
70. 3:15box, not a line. Step two, wait for the
71. 3:19price to come back to that zone. Step
72. 3:22three, watch how it reacts. If price
73. 3:27stalls, wicks, forms a big candle,
74. 3:31buyers and sellers might be stepping in.
75. 3:33If it breaks through with power, that
76. 3:37level might flip sides. Don't guess. Let
77. 3:41the market show you what it wants to do,
78. 3:43then react. And if you're still
79. 3:45struggling getting into a trade because
80. 3:47you keep secondguessing yourself, go
81. 3:49check out our new earn as you learn
82. 3:51program where we provide you the trade
83. 3:54setups so that you can see what good
84. 3:56trades look like and feel like to make
85. 4:00those profits. And while you're
86. 4:01executing those trades, you can learn
87. 4:04about day trading. So now you don't have
88. 4:05to wait 6 months until you can start
89. 4:07trading. You can do it from day one as
90. 4:10you're learning. Check out the earn as
91. 4:11you learn program at trdfloor.com.
92. 4:14Now the flipping of these support and
93. 4:16resistance zones is known as market
94. 4:20structure. Every time a level flips from
95. 4:23resistance to support, it builds
96. 4:26structure. That's how trends form.
97. 4:30higher highs and higher lows and lower
98. 4:34lows and lower highs. It's not
99. 4:36complicated. It's just price breaking
100. 4:39one level, flipping it, then doing it
101. 4:42again. And every flip zone gives you
102. 4:45another place to trade from with
103. 4:47confidence. Support and resistance has
104. 4:51100 names, but it's all the same. Some
105. 4:54people call it support and resistance.
106. 4:56Other people call it supply and demand.
107. 4:59Some people say market structure and
108. 5:02others say order blocks, but it's all
109. 5:05the same. It's just price reacting to
110. 5:07places where people care. The name
111. 5:10doesn't matter. The reaction does. So,
112. 5:13don't get lost in terms. Focus on how
113. 5:16price behaves. Now, one of the massive
114. 5:19unlocks that I discovered while learning
115. 5:21how to trade was what volume tells you
116. 5:24when price breaks a level. Hopefully
117. 5:27from my explanation, you completely
118. 5:29understand that price reacts at support
119. 5:32and resistance. But how do you know if a
120. 5:34breakout is going to be real or just a
121. 5:36fake out? That's where volume helps.
122. 5:40Volume is like the lie detector test for
123. 5:42candles. If price breaks through a level
124. 5:45and volume spikes up, that means a lot
125. 5:48of people are behind that move. It's not
126. 5:50just a little push, it's real momentum.
127. 5:53But if price breaks a level and volume
128. 5:56is low or falling, that's a red flag.
129. 5:59It's like a trap. Here's a simple rule
130. 6:01to follow. A strong breakout means
131. 6:05strong volume and weak volume means be
132. 6:09careful. Support and resistance is one
133. 6:11of the first things that most traders
134. 6:13learn when they get started. But
135. 6:15unfortunately, a lot of people learn it
136. 6:17wrong or they have the incorrect
137. 6:19understanding of why and how all of
138. 6:21these areas work. Support and resistance
139. 6:24is not magic. It's just memory. Being
140. 6:27able to look left and see what price has
141. 6:30done and looking into the memory of the
142. 6:33price, you will be able to see and react
143. 6:36to how price reacts at these levels.
144. 6:39Master this and your trades won't feel
145. 6:42random anymore. I hope this video helped
146. 6:44you guys out and if you have questions
147. 6:46that you want answered in a video
148. 6:47response, put them in the comment
149. 6:49section down below. Thanks so much for
150. 6:51watching and we'll see you in the next
151. 6:52one.