Support and Resistance trading strategy || Beginners Guide to Support and Resistance || TTI

Support and Resistance trading strategy || Beginners Guide to Support and Resistance || TTI

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hey everyone this is a trader investor in  this video i want to talk about uh support and   resistance there's uh some confusion right if when  we get to support price is supposed to reverse   when we get to resistance price is supposed to  reverse or if we break through it we take the   position on the other side but i want to show you  how it is important to understand what support and   resistance are how to draw them right especially  if you're a beginner in this thinking uh and   support and resistance is a zone not a specific  point on a specific line it's a zone and it's   also not just a horizontal line it can also be  a trend line that is going diagonally up or down   and you can combine it with various things with  demand zone supply zone but i'm not going to   confuse you with that in this video i'm just going  to focus on support and resistance so the first   thing i usually do is look at my monthly chart and  see where we are on the monthly chart and as you   can see the monthly uh was in the queues looking  at the queues the monthly had a nice uptrend   right that it keeps breaking and  what i mean by keeps breaking is   if we start here in march of 2020 when uh  the markets collapsed because of confidence   then recovered soon after that when you look at  that and you draw some touching points the last   four or five months has been choppy we've  been going up and down that uh trend line   now it's okay uh you can keep redrawing it  but i you know when you keep redrawing it it   kind of gets confusing as to you know what is  the right thing to do what is going on is it   really moving in the right direction uh or is it  doing something else uh because you're gonna keep   redrawing it and you're gonna miss the point so  uh as long as you have it touch a couple of points   that just gives you a reference so we broke out  of that uh trend line uh and then on the weekly   i'll just make sure that we are still seeing  uh the same thing similar things uh that we   are seeing i'll redraw these i just want to show  you how i get to them right so here the weekly   that trend line is broken and we're on the other  side of that trend line until we form a new trend   line up or down we're just gonna take a look  at that and then i'd like to go to the daily   and this is where i add additional uh trend  lines to you know more recent price action   if you look at more recent price action  i like to draw them i like to draw them   in different colors so that i know which one i  drawn the mostly which one i drew on the daily   and so again the idea behind this trend line that  is broken is still there so we're going to get   to a little bit more in depth but i just  wanted to show you how i keep drawing them   by going down to lower time frames and then from  the daily i you know i like to use the daily   for my horizontal uh trend lines and what  i see here is uh i'll draw it across the   whole line instead of just that point is  this is an area where price has tried to   touch multiple times to the trying to go up  resistance resistance resistance multiple times   it acted as support a couple of times  support support and then it broke through   twice it did not close below it one time close  below it but it immediately reversed this is an   area for manipulation where short traders would be  trapped again you see it here playing around there   uh and then after that the last few days we  have completely collapsed from this uh area   so it's good to keep that into the picture  and if we see more of them down here   fry's played in this area multiple  times multiple times multiple times so here is additional ones that you can see  now and i'll just draw the ones that are near   our current price point and like i said  because it's a zone right i'm trying to find an   area where price has touched multiple times right  down reversed or up reversed up reversed up played   around that area played around that area for a  while before it continued those are going to be   important areas of support important areas of  support when you combine those other things you   will not be required to draw these areas because  i draw them as a zone i already know this   is a zone so i'll draw it that way that's what  you see with this demand block here but that's   another video that really goes into details  uh and and then we'll go down a few more times   uh because we want to see more touches  because uh this is where price is uh   and maybe one or two more to see okay here's an  area where prices spend a lot of time in this   area here in this area here in this area here  prices spend a lot of time so this is a couple   of areas now that we are playing with now what's  important is these lines did not happen this last   couple of weeks or not even this whole month of  january they were in play for a long time right in   december back before december october time frame  september time frame they're always in play and   so what we're looking at is when price comes down  to that support area when price comes up to that   resistance area what does it do that's the purpose  right many points that's why we want many as many   touches as possible to make it a strong area when  price comes to that area what does it do does it   struggle right does it hit on this day rejected  hit the next day rejected the third day   get past it but then stopped out this is where  manipulation happens and then it continued up   so very very important areas when price comes  to here very important to see what it's doing   critical to understand what it's doing  before you jump in and trade in any position   just because it went down here it  doesn't mean it's going to go down here   right and then when price drove up  and it came back down to that area   tried to go through rejected tried  to go through rejected came up again   barely got there rejected the next day  tried to get there rejected the third day   a little bit of an attempt rejected froze  day came down passed it rejected closed above   the following day this is where people got trapped  people who thought ah okay now we're really   bearish because we have gapped down this much  i'm gonna take a short position well you know   if you did it at the open you were happy for  a few hours and then price reversed on you   uh so it's very very critical and and we have  to also see what is the most recent trend line   support resistance this areas where price came  down twice this is more recent it's not as strong   as ones that do it multiple weeks multiple months  but more recent we have a double bottom right here   so do you trade into this double bottom  right very critical to understand   this uh support and resistance areas right you  don't have to draw these once you understand   how they work you see price comes down it  comes down again double bottom am i going to   hurry up and enter to the other side no it comes  down again right it goes through here again   rejected goes down next day goes down some more  now this short people hopefully they took profits   because you know the following day it came back  above got rejected when you when you combine   this with a structure when you combine this with  lower highs lower lows higher highs higher lows   you get confidence to enter some positions  maybe a little bit sooner but understanding   that if if you enter sooner up here you have  lower highs that keep forming lower highs   so if you enter in this area what do you do when  price comes to your support line do you exit at   that support line or do you hope to continue  down well in this case that didn't last long   so you gave back a lot of profits every single  day in this case it lasted a little bit longer   and because i'm assuming lower highs and  you've taken your position somewhere here   when you get down to here do you take some profits  or do you hope it's gonna break now it's maybe the   third time it's going to break we don't know if  you kept holding it reversed on you and you were   back in uh not a loss but much less of a profit  so do you continue to drive those expectations   or do you know that this is a strong area of  resistance and support up up up up up up up up   and then down down down down down that it tried a  few times so here's where i say take your profits   take your profits in this area if you're brand new  to support and resistance take your profits right   don't let price reverse on you one of the things i  always say don't give back profits if you're in a   nice position don't give back profits you you take  a position here and it comes to this trend line   right price comes to that trend line didn't  break it one day two days three days now the   first time it went then and got rejected did  you take your profit because otherwise the next   day you don't break even if you're doing options  you might even be losing because a few days have   gone by and so what do you do do you then uh  take you know you come down to this trend line   you know this is a trend line because you  drew it do you take your exit that's that's   critical otherwise you have to go all the way  up here and then come all the way back down here   i do not teach roller coaster trades i teach  knowing when to enter and when to exit before you   even place the trade before you pull the trigger  you know i'm going to enter here lower highs   i get an indication that i'm going to go short  i'm going to go short here and i get an indication   that at this trend line price did not slice  through this trend line it actually touched   and struggled i'm exiting here right this is why  you draw your trend lines very very you draw it   turn nice and it doesn't matter what instrument  you're working on doesn't matter what instrument   warehouse price been multiple times right  when you take this vanguard real estate uh etf   in this area the 111 area price got rejected  multiple times multiple times even here it   consolidated around that area one day above it  one day below it another day above it another   day below it very very key area when it comes  down it struggled for a couple of days before   it broke through even then it can reverse back  and now it tested it as resistance and collapsed   so knowing your strong areas of support and  resistance where price has been multiple times   do not be picky like oh it's touching here but  it's not touching here it's barely touching here i   don't care i'm not picky because for me the way i  look at these is it's a zone it's a zone like this   it might even draw a little bit it's a zone so  uh if you're new maybe you want to draw it as a   zone like this draw it in um in some colors  that you can see clearly that that you can see clearly uh and then we change the opacity  here same thing that we do here   right maybe just play around with it uh like  this and say oh okay every time i draw a line i'm   actually going to draw a box to say somewhere in  this vicinity is my support and resistance very   very key to understand this where has price been  multiple times and as a reminder we start with   our uh monthly right at least for me that's how  i start and where has price spent a lot of time   coming down to up comes down to it up comes down  to it where has price done that multiple times that's that's my trend line is  it respecting that trend line   when i go to my weekly right i see it clearly  is it respecting this trend line when i go to my   daily when i go when i see this trend line  is still respecting it i don't need to draw   any new ones right and so on the daily now i can  just focus on drawing my support and resistance   very very important to understand this concept it  is critical to your trading when price comes down   what does it do you take action accordingly  right if you have taken enough profits when it   comes down to support you're not sweating it if it  reverses because you've taken enough off the table   right 50 of your position 75 percent of  your position is off at a strong support   then you let the rest right right you don't sweat  a little bit of a rally while it's going down   very critical and then you you keep drawing your  your lines you keep drawing your lines because   this is where we are multiple times this is  support support resistance support support again   support price came down and held we don't know  what's going to happen next but for now it's only   so we know when price has gone through the first  support our target is the next support since we   draw these we already know ahead of time to expect  this target and and then as you start drawing   these demand zones that's for me that demands on  many many times aligns with his uh support area   so i that's all i need to draw but that's a little  bit more advanced and you can look at those videos   but here once you understand resistance support  resistance support and it's a zone and when price   gets there do i take action like do i enter do  i exit i prefer to enter away from that zone   and then come back down to it  but there are multiple other   scenarios where you can enter it even around  that zone but the one thing i will say is if if you see price breaks through do  not be in a hurry to enter because   they are most likely going to come and  stop hunt this and then take people   to think that it's going to go short  they're going to stop hunt them they're going to do this and you might not see it  if you're only looking at the daily bar you might   see this in a one-hour bar in a 15-minute bar or  less but in a on a day it might just look like   a doji a hammer or something but they might have  done this multiple times so when you come to   an area of support resistant an area of value  do not be in the hurry to enter any direction   ideally what i like to see is price  breaks out of it it comes and forms a base it forms a base that it does not break higher  low higher low key part and i can enter when   price breaks this area or if i am confident that  it's holding here enough i can enter when this pin bar here is formed so i will  erase these so you can see better when this is being a short-term support right we  i talked about short-term support earlier when   this is being a short-term  support and you get a nice   pin bar boom you take it especially when you're  playing options these are going to be awesome   hopefully this has clarified for you support  resistance trend line as support and resistance   as well because trend line at the upper side  acts as the resistance at the lower side acts as   support just like you've seen here  support price reverses support rejected   but then we're on the other side the whole  market is uh in correction so you see that   the whole market is in correction you know that  because we have a significant move high to low   right high to low significant move  in any market that you look at that's a significant move we have i told you right uh we're way past five percent   correction alright everyone take care  and i'll see you in the next video you

2022-01-27 04:08

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