So area of value and by the way, if you're, enjoying this training so far smash the thumbs up button if not hit subscribe. So where was i area of value, so area of value in essence, right helps you to answer this question where to buy or sell. So, if you recall, market structure tells you what to do. Should you be looking for buying opportunities, selling opportunities or maybe to stare off the markets totally for area of value? It tells you where, where on the chart, to buy or sell so i define area of value like this right area of value, helps you to identify areas on your chart where buying or selling pressure could step in.

So let me explain this in more details, so how do you identify area of value? So again, there are many techniques that you can use, but for this training i'll share with you two support and resistance and moving average. So let me explain so what is support and resistance? So support is an area on your chart where buying pressure could step in. So if you look at this right, let's say price goes up, comes down, goes up, comes back down, goes up comes back down now, from the looks of this right, we can say that this is an area of support, because this is where previously, the price has Bounced off once twice and now, possibly a third time over here, so this is what we call an area of support, an area on your chart where buying pressure could step in and push the price higher. On the other hand, we have something called resistance.

This is an area on your chart where selling pressure could step in and push the price lower. So it looks something like this. Let's say you know: price gets in a downtrend, comes up, bounce up comes back down, goes up, comes back down, goes up and we can draw this as an area of resistance. Price got rejected once twice and now maybe a time over here.

This is what we call an area of resistance is where potential selling pressure could come in and push the price lower. So this is the opposite of support, and another thing to add is that when support is broken, it could become resistance and vice versa. So, for example, let's say market is in a range like this: okay, it goes up comes down, goes up, comes down and breaks out of the range breaks out of resistance. Now, when it comes back down lower this area of resistance, this previous area of resistance right resistance resistance.

Now, once it breaks out of resistance, it could now become support. This is what we call previous resistance, which now become support. So likewise, if support is broken, it could now become resistance. So, let's say price is in a range.

Then it breaks down below support and it comes back up now. Previous support support, support could now access resistance and you can actually uh sort of, like you know, anticipate right. The price could reverse lower from here. Okay, so this is what we mean by when support is broken, it could become resistance and vice versa.

So let's have a look at some charts, so you know what i mean so first one here is platinum. You can see the support and resistance here in action. So this is, you can see previous resistance price. Then you know hit down lower tested once they had a messy slide off price.

Then came back and re-test resistance head on a bit lower re-test it hit lower then finally broke out previous resistance become support. Then you continue up higher, pull back head up, higher, pull back and then breaks out of this resistance comes back previous resistance now becomes support. It heads up higher pull back heads up higher to kind of where it is right now. Another example: euro against the australian dollar, so for this one you can see that this market is in a downtrend series of lower lows and lower high lower high lower high lower high.

So, okay, we're not talking about market structure. Now now we want to pay attention to the support and resistance. So if you look at this one over here, you can see over here. This previously is support.

Okay price broke below support and re-test previous support become resistant. So it's a bit far away from this area of support, but you want to bear this in mind: it's not an exact level or line on the chart. It's an area! Okay, so this you know had a bounce over here a rejection at this previous support, which became resistance. Then price hits down lower retests previous support, which became resistance.

Heads down, lower comes back up, pulls back and heads back into this area of resistance to where it is right now, so you can see you know, support and resistance here in action and finally another one is a pound canadian. You can see that you see that this market is pretty much just stuck within this range between these highs, which is resistance, and this lows, which is support - and one thing to add, is that you can also you know. If you want, you, can, you know, use a tool like the rectangle tool to draw or identify your area better like this. Personally, i like to draw it as lines, even though i treat it as an area, but for those of you who prefer to draw it as a box.

This is something that you can do as well. Okay, so this is kind of like personal preference, just a tip to share with you. So now, let's talk about how right to draw support and resistance. Shall we you.