Hey hey: what's up my friends, so in today's video i want to share with you three unbreakable rules when it comes to support and resistance number one avoid buying lower highs into support. So here's what i mean so, for example, if this is an area of support - and you see the price right goes up, comes down to support goes up, comes down, goes up, comes down, goes up, comes down, goes up! Comes down at this point right. You can see a series of lower highs coming into support, and why do you want to avoid buying to support? Because this is a sign of weakness? This tells you that the sellers are in control. That's why they are able to push the price right consistently lower over time, and if you look at the buyers right, they are, they are not able to take charge.

Take control. How do i know that? Because you can see that the buyers they are unable to push the price right above the previous swing high, so every time it tried to ready higher it couldn't even break above the previous swing high. So this is a sign of weakness and more often than not right, what happens is that is that the price is likely to break down lower, so avoid buying lower highs into support and, on the other hand, right. The opposite is true as well.

If you see that this is an area of resistance, then you want to avoid shorting right higher lows into resistance. At this point, you can see a series of higher low higher low higher low high low coming into resistance, so the market right in this case is more likely than not to break out higher. So that's the first golden rule that i have for you number two look to buy power move into support, so when i trade support and resistance right, i like to see right. The market making right a strong in this case support right.

A strong move right into support, so in this case i would see a series of of candles like this, which are very bearish strong, bearish momentum candles coming into support, i like to buy right such a strong power move into support, so i think i'll share with You a chart, you can see better. So in this case you can see that this is an area of support and look at this strong power move coming into support. Why do i like to buy into this type of strong power move, so i wouldn't necessarily just just buy, because i see a series of you know strong bearish momentum candles i'll still wait for a valid entry trigger to go along, for example, things like a hammer, A bullish, engulfing pattern etc, but for but the concept that i'm trying to share over here is that when you see a series right of strong bearish momentum candles coming into support right. This is good because if the area of support holds right, the price could just as well quickly reverse back up higher easily, because there is no obstacle in the way when you have a strong power move coming into support.

Okay, when you have a strong power move coming to support, you can see that the nearest obstacle is actually at this swing high over here compared right with a choppy stair-stepping price action move into support like this right. Let me give you an example like this one. Over here, so you can see again. This is an area of support, but this time around the price action that leads into support is that you see a series of kind of like a lower high into support, and you can see that these are obstacles.

Obstacles in your way, if you're a buyer, because this over here is where selling pressure could be lurking in the background where sellers might want to shop at this swing high or possibly this swing high. So you can see that from a potential, a profit potential standpoint right, there's really a lot of obstacle right that you have to go through right for the price to move up higher. So if all else being equal, i always prefer to buy a strong power move into support like this, because there is just no obstacle in my way or i should the price reverse up higher. The nearest obstacle is usually quite a distance away and that right improves my overall risk to reward on the trade and, finally right.

The third golden rule is avoid placing your stop loss just below support. So, for example, if this is an area of support and the price goes up, comes down, goes up comes down, it starts to go up. What you want to, what you don't want to do is to place your stop loss just below support. Why is that? Because it is common right for the market to just come down, lower, take out your stops and then continue to reverse higher.

So if your stop-loss is just below support right, you are attracting right, or rather you're, asking like to get stop hunted. Okay, so you need to give your stops some buffer, so you can avoid right such a situation and the way to do it is quite simple. So if this is an area of support, okay, so and the price goes up comes down goes up and let's say it comes back to support and bounce up higher you want to you buy over here. Your stop-loss will ideally be somewhere about here.

So this way right, you give your trade room to brief, and even if the market just does suddenly spike, now lower right, it's unlikely to reach your stop-loss right and if it continues up higher from there, you have just you know, avoid being stop hunted. Okay. So let's do a super quick recap to what you've just learned today: number one avoid buying lower highs into support, because it's a sign of weakness, number two look to buy strong power move into support right compared to those type of stair stepping price action into support. Uh, usually those are the type of price action that i would avoid right, buy into support and, finally, right avoid placing your stop loss just below support right.

So this way you can avoid getting stop hunted, so that's pretty much it if you've enjoyed today's training smash. The thumbs up button don't forget to hit subscribe below, and i will talk to you soon. You.