So first and foremost right, this example is a market which is in an uptrend. So if you know a market is in an uptrend that you only want to identify area of support on the chart and the way I do it is to identify areas levels on the chart where the market bounds off higher so you can see over here. This is one example: Market making a pullback over here. bounce of fire made a pullback over here bounce off fire.

So what I'll do is I will draw area of Support over here this one over here and there's another one over here. Now how do I Kind of like fine tune my level. So the way I like to do it is that I like my area of support right to get as many touches as possible. So you can see that this black line over here that I've drawn right I can actually shift this black line up higher and take into account this lows over here.

So that's what I'll do right now. So I'll adjust my area of support and push it up slightly higher. So this way I got multiple touches I got this one touch over here and two touch over here. so same for this over here right? this one over here I'll push this up slightly.

Okay, so when I do this I now got three touches I got one touch two and three over here. and what about this one over here this I think there's another area of Support over here. I'll draw this one here. You can see that if I were to draw here.

right? I I would either have to consider touching this line or push it down lower to touch this line over here. So again, what I usually do is that is either you're going to leave it at this line or you'll leave it at this line because there's no way to get both of them being touched. So usually what I'll do is I'll take into account the more recent one and push it to somewhere here. Okay and another tip to share with you is that support and resistance.

They are an area on your chart but I like to draw it as lines on my on the chart. This is my habit. So what if you want to do you can also do is you can draw it as an area. just use the rectangle tool on trading view.

Over here you can see rectangle click on it and you can just highlight it as an area on your chart. So again you can change the color if you want to do this. it's gray. Okay, you just draw this.

it's an area on your chart and then over here you can draw it as an area on your chart as well. So this kind of like reminds you it's an area and not a line on your chart. So I'll remove this for now since I prefer lines my own personally And another thing to also share with you is that when you draw support and resistance I typically not have not more than two areas of my chart because if you have too many, you're going to feel overwhelmed. You might be thinking right right now you know? What about this one over here right? This is another level you can draw.

What about this one Over here? Another another level that you can draw. And that's true. Those are levels that you can possibly draw. But here's the thing.

This will just clutter your chart with a lot of unnecessary information and I usually just want to keep only the two most recent one. Why is that? So let me explain. So let's say for example: why don't I have this particular level over here to leave it as a pot? Well, think about this. if the market comes down all the way to this level at this area of Support over here the market reverse down lower.

Do I still want to be buying this price point around? you know, 114 50. and the answer is no. even though it's an area of support. Why? And the answer is this is because by then the market is no longer in an uptrend.

Let me repeat right by then: if the market reaches this area of support, it's no longer in an uptrend. You can visualize the price action. at that point, the market is likely to be in the downtrend. And if the market is in a downtrend I want to sell that resistance, not buy and support.

So this is why I Usually just have not more than two areas of support on my chart. So I'm just going to remove all the additional one. Just remove, remove and remove so my support and resistance will look something like this on the chart. And also, one more thing to add is that this level over here will be significant.

Why is that Why is this level significant? So recall. Okay, recall about our uptrend invalidation. The uptrend will be invalidated right when the price breaks below the swing low that precedes the breakout. Yeah, so this over here is the swing low that precedes this breakout over here.

So this highs is the breakout point over here. and this is the swing low that precedes the breakout. So at this point, if the market comes down lower and breaks and lets it close below, support This Market to me is no longer in an uptrend. It possibly could go into a range or even a downtrend altogether.

So this is what I call the uh, You know the last line of defense. If you want, you know the last line of defense where you know support must hold. If not right, the entire Market structure will shift from from an uptrend right to something else like a range or a downtrend. Now another example right? Look at this chart over here.

so let's do a quiz, right? Pause this video If you have to right and visualize, ask yourself: how will you draw resistance right in this downtrend? Where will you draw your area of resistance in this downtrend? So I will you know do my version of it? You can pause this video and see no, identify which levels you want to draw and then we can compare and see whether your answers is similar to mine. And really I want to say that there's really no right or wrong? This is just my own preference. my way of identifying resistance. If you have your own method that works for you, that's great, but if you're new you have no idea where to start then you can try using my method first right and then from there you can fine tune to what you know Works what works for you.

So for me again right how I would do it is again I Like to pay attention to the two most recent highs. the two more recent levels where the market actually you know the decline from. so this is one I've identified over here and then possibly another one over here. So notice how the market over here it uh, consolidates right, then hit down lower then over here.

we just decides and then hit down lower so this will be the two area of resistance that I will draw on the chart. So I think I will leave this as it is right and again. Why I don't have so many resistance area Why I don't have it here. Why I don't have it here again.

It's very simple. If you imagine this right, imagine from where the price is right now. let's say the market rarely up higher to this highs. Do you still want to be selling at this price point over here? Do you want to be selling here? Probably not because this Market is slightly no longer in the downtrend, probably in in the uptrend and in an uptrend.

As you've learned right, you want to be looking to buy at support. So again, this is why I just typically have just the two, most, uh, recent resistance on my chart and that's pretty much it. So in this case, let's say if the market comes up to this area of resistance, this is where I can look for selling opportunities right? to short this Market But of course I don't just blindly, you know, sell when the market come to this price level. That's another thing I still look out for which I'll share with you really shortly.

But for now, this is how I would draw resistance resistance in an downtrend. And finally, right, how do you actually draw support and resistance in a Range market? So again, the concept is similar. You want to identify the levels, the areas on the chat right where the market has a huge swing right? or huge, uh, decline already from it. So if you look at this chart, this is a key area because the market has a strong collapse from it.

This is another one, right? Not a strong collapse. Now what about the lows right? So this will be a key one. That's the market did rarely up higher from it. This is another one Strong.

Really, this is another one strong rally. So once you identify these key points where the market just keeps getting rejected higher and we're keep getting rejected lower, this is an area on the chart where you want to pay attention so in this case right recommend You know, using a rectangle tool so you can better identify or support and resistance. And of course if you want to use lines like me, it's your choice as well. So this will be my area of resistance and for area of support will be somewhere about here.

Okay, you can see I try to get as many touches as possible so you can see for this area of support right? We have this uh, one touch, two, three, uh, four, five, six seven, this one over here. One touch, two touch. Okay, so actually this one here I might even shift this up a little bit higher to take into consideration this lows as well. Okay, so you have to learn how to draw support and resistance like a pro.

So now using what you've learned right, let me share with you a powerful trading strategy that allows you to profit in Boo and bear markets. Let's get to it. Okay, now let's have a look at some training examples so you can see how you can use the concepts that you've just learned right to trade the market. So you learn a support and resistance trading strategy that allows you to profit in pool and pair markets right? So first thing first, remember right, what is this Market structure? You can see this Market is in an uptrend, and when the market is in an uptrend, we want to be buying as much as possible at support.

So let's identify our area of support right on this chart. so you ask me to draw it. I'll probably have this one here okay, and possibly another one over here. Okay, so you can see that these are the two most recent swing points right on the chart.

Next, let's see what happens next. So what my plan now is is that if this is what to happen, right I'll be looking for buying opportunities right at this, uh, first area of support or possibly the second area of support. If the price comes down to here or here, it's unlikely. I'm interested to look for buying opportunities.

I'll probably look at some part of markets instead. So let's see. so the market is down lower comes down into this area of support. Let's see what happens next.

Now over here we have a hammer. so if you remember, a hammer tells us that the buyers are temporarily in control as they have managed to, you know, push the price and close near the highs of the day. So this is a valid entry trigger to go along. So let's say we go along on the next candle open.

So I'm just gonna let's say uh, have a line right to signal that we go along on this. Uh, make Scandal open. Let me just remove this box right. So I don't confuse you.

Okay, so so now this green line represents our entry price right? Okay, so if the Market opens the next day, right, this is our entry price. Now what about our stop loss? Our stop loss is something that I've not covered yet. But generally when I set my stop loss I like to have it a distance below the area of support. I Don't like to set it just over here because the market could possibly come down lower, hit my stop loss and then reverse up higher.

How many times have that happened to you, right? So this is why we want to set our stop loss usually at distance below the lows and one way to go about doing it is that we can actually use the ATR indicator to help us with this. So just search ATR pull it out I Typically go with a 20 period ATR and SME Okay, so what we're going to see now is that the value The ATR value is 1.221 So how do you make use of this information? So very simple. This tells us that over the last 20 trading days, this currency pair Swiss franc against the Japanese Yen moves an average of about 122 Pips a day on average. So what we want to do is to identify the lows over here right at Minus 1.221 So what is the lows of this candle over here? So if you realize the low of this candle, it's Uh 137.15 So I'm going to take one: Three, Seven Point One Five One Three Seven Point One Five minus 1.22 Okay, so if I do that I get 137.15 minus 1.22 That gives me a value of 135.93 Pardon D in writing So 135.93 So that will be my stop loss level.

So I'm going to highlight that on a chart so you can see it. So over here, let's change this to rate to signal that that is our stop loss one Three, Five Point Nine Three. So that is my stop loss. Okay, so now just to reiterate right, why this level is our stop loss is very simple because this low over here, let's say this low.

let's call it X right We minus one ATR Okay, you know the value of this low is about uh, at that point in time was about what what did I see I Remember, but the low over here is pretty much Uh, 137.15 right? Every minus of 1.221 is shown over here, which is one ATR value and that gives us a stop loss of 135.93 as shown over here. Okay, so that's how we derive with our stop loss. Now what about Target So many ways to go about setting your target. but for Simplicity sake? For now, since this is the first example, we usually can set our Target just before the recent swing high.

So let's just change this to Blue and set this as our potential Target profit right? So because this is again is an area of a resistance price bounce of ones come down lower bounds of second time come down low. So maybe at that time you could hold up right and possibly reverse down from here. Who knows, right? Although this Market is in an uptrend, it doesn't mean that you know the price will always go up forever. So this is, uh, this swing High over here could be a good reference point for us to take profit where sellers might come in and exit some selling pressure over here.

So this will be a potential Uh level to set your target. Now, if you want to assess this from a risk to reward standpoint, you can actually use this particular tool over here. click long positions and you click this over here. So this one over here, you should put it in your entry point and this one put it to your stop loss level.

This one over here put it to your take profit level and you can see that over here. If you assess this a potential trade, it's a risk to reward of one to one point one four. This means you're risking a dollar to potentially make a dollar and 14 for this particular trade and just to walk you through this particular trade right? what happens? Let's see eventually the market did uh yeah, probably would have hit our Target over here on this candle right giving us a profit. So if just to place it right, let's say you know there's some sleep Pages you didn't get filled eventually.

Yup, this candle would definitely would have gotten you out with a profit for this particular trade. So this is the example of how you can actually use support resistance right to uh, time your entry right and to identify you know trading setups in the market.