Hey hey, what's up my friends, so welcome to the ultimate support and resistance trading course for beginners. So here's the thing right when i first started right in my trading journey right. I learned about support resistance, but i was confused right. You know there is so many support and resistance levels to draw my charts.

Then how do i know when to buy and when to sell? How do i know when support will hold and when will it break so it's after you know, years of trial and error. You know figuring things on my own, then i realized you know how to really trade support resistance. So this is why, in today's trading, i don't want you to know, go through what i did. I have prepared this in-depth training for you to teach you right.

The truth about support and resistance that nobody tells you how to draw support and resistance like a pro without cluttering your charts with useless lines, i would say only five percent of traders right know how to do it. Then you learn how to time your entry at support with precision, so you only buy when the market is about to reverse higher, from support right and not when it's going to slice through support and plenty of charts and examples right. So you can quickly master support and resistance sounds good. Then, let's dive in.

So what is support and resistance? Let me explain so: support is an area on your chart where buying pressure could step in and push the price higher. So let me explain how this would look like. So let's say the price comes down lower. Then it goes up.

Higher comes down, lower goes up, higher comes down lower and it bounced up higher again. So at this point we can say that this is an area of support. This is an this is an area of support right because there's a possibility if it comes back down for a fourth time, buying pressure could come in and push the price up higher. So this is what we mean by an area on your chart where buying pressure could step in and push the price higher now.

Why does this happen? And the reason is very simple, self-fulfilling prophecy, because if enough traders notice this phenomenon right, they would expect the price to hold and continue higher. So, for example, let's say stock abc right, it comes to the 10 support. Bounce up to 20 come back to 10. Bounce up to 30, come back to 20, come back to 10 bounce up to 20.

So if enough traders pay attention to this deal thing this area, this 10 right seems to be an interesting place to buy, because over the last three times right, stock abc has bounced off from 10 right and hit higher from there. So if enough traders pay attention to the area on the chart, this becomes a self-fulfilling prophecy and support becomes an area where buying pressure could step in and push the price up higher. So that's kind of like the theory behind it. So, on the opposite end of things right, we have resistance.

This is an area on your chart where selling pressure could come in and push the price lower. So this looks like this right. Price goes up. Higher phase selling pressure comes down, lower, try to break out above the highs.

Fair selling pressure comes down lower re-test, a third time phase selling pressure come down lower. So at this point we can say that this is an area of resistance on the chart. This is an area of resistance, because the price has faced difficulty by trying to break out higher. So if it comes back up for a fourth time, this area of resistance could hold selling pressure, could step in and push the price lower make sense.

So one last concept to share with you is this: is that when support is broken, it could become resistance and vice versa. So in other words, if resistance is broken, it could become support. So let me kind of illustrate this particular concept and then we move on to the charts. So let's talk about support, let's say: price comes out lower, then reverse comes down, lower, reverse up higher and it comes down.

Let's say at this point right: you can draw this area of support. Okay, then say the third time right, it didn't hold. It actually break below support, so you can see over here. This is previous support, previous area of support, and now, when the price comes back up into this previous area of support, this could be now become resistance.

This is where we can expect selling pressure to come in right and push the price down lower and you might be wondering hey rayna. Why is this so? So let me explain to you again the theory behind this, so the theory behind this is that at this point right when the price re-tests support for a third time, there are traders who think the price will reverse and bounce up higher from there. So they buy. Then what happens is that the price kind of didn't work out the way they expect the price.

Instead, you know when against them, the market went against them and they feel pain right as the price hits lower. Imagine you buy stock abc at 10 and the price drops to 9. It drops drops, drops drops drops until you feel very painful right. I couldn't sleep right couldn't eat starting to lose weight.

Then you see a glimmer of hope right from ten dollars down to. Let's say two dollars, and then you start to reverse up higher two dollar climb up to three dollar: four dollar: five dollar six dollar and back to your entry point at 10 over here over here right, you finally right have gotten out - or rather your trade has Gone back to break even so previously, you were losing in the rate very badly and then hope came back in right and the market went back to the original price which you bought. So at this point in time, you tell yourself man, that's enough! Let me get out of this trade. Let me know get rid of the pain, so you sell you exit that long position.

So when you exit the long position, you're selling that trade off you're selling stock abc right back at the same price. So when you sell this creates selling pressure in the market, and this is why we have the theory where, when support is broken, it becomes resistance. And, of course that's not the only reason why the price should reverse at that area. There could also be other traders.

Looking at this and thinking this could be another self-fulfilling prophecy right, because the textbook the courses say you know if support is broken, it could become resistance and then they start to sell at the area. If enough selling pressure is out there right. This previous support right could become resistance and that's kind of like the the two, or rather the few theories behind it to why this happens. Okay, so let's have a look at the charts right to see, support and resistance in action.

So, as you can see, we have a number of support and resistance here drawn on the charts already. But don't worry right i'll, explain to you later on how i draw this areas or levels all right, but for now just focus on the concepts that i'm trying to share with you. So first one here. This is an area of resistance, right price tested once twice.

Three times four times five times, this is an area of support. Okay, price tested once twice came down, we'll consider consider this a third test and then it hit up higher so pay attention to here notice how over here the price came down, lower and break right below this area of support. So previous support support, support now becomes what, when price breaks below support, it now could become resistance, and we actually see this phenomenon over here. Price hit up higher got rejected previous support, which became resistance.

Then it heats down lower retests, this area of resistance, heads down, lower re-test, this area of resistance and then heads down, lower and then break right below this uh swing, lower. Consider this a swing low. Then you can see that again right. The same concept right.

This swing load now becomes resistance over here heads down, lower re-tests as resistance, then heads down lower, then uh pulls back and it hits down lower and right now, the price you can see right, re-test that same area of resistance here and here as well. So right now price is kind of like you know, just in the middle of nowhere. So you can see this support and resistance how this concepts right come together, so another chart pound aussie. This one is quite straightforward.

This is an area of resistance right tested once twice three times four times five times. This tested this area of support over here here and here so after which you can see resistance support, another example platinum. So if you look at this one here, you can see this is an area of support. If you look back a little bit right, you realize that previously this support is an area of resistance, so price breaks out of resistance now becomes support.

Okay, so you can see the same thing over here: area of resistance, price breaks out of this area of resistance, come back, re-tests support and it heats up higher. This is a previous area of resistance. Price heads up higher comes back every test, previous previous resistance, which become support okay, so when he tests right when he tests this lows enough time, it knows you now become like this new area of support all right. So hopefully this this makes sense, and let me share with you one more example before we move on so over here: dollar against the south african rent area of resistance tested once twice three times area of support over here test.

It once twice three times then again pay attention when the price breaks below support over here price breaks below support. This area of support previous support becomes resistance. Then price hits down lower right then comes back here. Re-Test resistance at this highs heads down lower re-test this area as resistance, then you know kind of head down lower break below this area of support.

Previous support now becomes what resistance then, over here previous support becomes resistance. Then price hits down lower, so you can see uh. This is pretty much. You know how support and resistance will look like on your chart.

You definitely need practice so so go ahead and watch how the price reacts at these areas in your chart. So now, at this point you might be wondering sure random. All this looks kind of easy on hindsight. You already draw these levels, you cherry pick all these charts all right.

So now the question is you know? How do i draw this uh areas of support and resistance on my chart? Well, that's what we'll cover next okay now, so how do you draw support and resistance, so there are different ways to draw it depending on the market condition. So, first, let's talk about drawing support resistance in a range market. So here's how you do it right number one! You want to identify the highs and lows of the range. So for me personally, i like to identify the extreme highs and lows of the range, because this is where you tend to get the strongest reaction when you trade support resistance.

So i focus mainly on the key highs and lows of the range when drawing support resistance. So i'd like to identify the key highs and lows the extreme levels, then i'll adjust it to get the most number of touches. So i'm going to show you right what i mean by this. So, let's have a look at a few charting examples, so you can see over here.

This is the chart of silver daily time frame. This to me is an area of resistance, and then this is an area of support. So let me explain what i mean by get the most number of touches, so if i were to shift this on to the extreme highs right, i will neglect this high over here. So i only have kind of like one touch over here, so i want to get the most number of touches.

I would shift this down lower where i have you know one touch and then two over here does it make sense so same for this one over here right, if i were to put my area of support at this extreme low, i will ignore this low over Here so again, i want to get the most number of touches, so i'll shift this up slightly higher right and you can see at this point. I have one touch two and three. In fact, i can push this up slightly up higher right and maybe even four over here. So this is how - or rather this is where my area of support will be and a quick tip for you is that for those of you who, as you know, right support resistance, it's an area on your chart, but the way i do it is i like To draw this extreme levels on my chart, the highs and lows the extreme highs and lows, but i treat this as an area on my chart.

So if you have difficulty treating this as an area on your chart, because it looks like a line - one tip that i have for you - you can use this rectangle tool over here. Then you just highlight up this area so again, just over here just drag across, and you have this area on your chart simple so again over here same thing: right if you want to use this rectangle to get as many touches as possible. So in this case, you'll, be your area of support, would look something like this make sense? Okay, so let's have a look at another example. Sorry, so you can see.

This is resistance. This is support euro against the usd so same concept applies right. I like to draw my support resistance right for range market. I like to point out right.

The extreme highs and lows of the range second thing is to get the most number of touches. So at this point again this one over here. If i look back, this is probably just the extreme high. I will just plot it at this highs over here then for the low i can get this one, and this one over here, two touches so i'll.

Just adjust this one slightly a little bit lower. Okay! So you can see that there are, of course right other swing points on the chart that i did not include. For example, let me just say what about what about this, this uh this high over here rainer or what about this low over here? Yes, i can see that these are swing points, but this uh to me right, not the key support, resistance area that i want to trade from. I want to trade right at the extreme level, extreme highs and there's extreme lows over here, because this is where i know i'll get the strongest right reaction from the market.

So if you want to trade these levels over here perfectly fine right, you can probably go down to like a four hour time frame or eight hour time frame you'll see that these levels are now much more significant. So if i go to the four hour time frame, you can see over here right this level here over here. This heist right would be more significant right relative to when you saw it on the daily time frame. So again, since i trade primarily of the daily time frame and when i you know, identify support resistance, the key areas on the pay attention to are the extreme highs and lows of the range.

But, of course, if you are trading off the one hour time frame the 15 minutes timeframe, you can go down to that time frame respectively and then identify the key highs and lows of that time frame that you're trading, the concept applies, and one last example pound Against the aussie dollar so again support resistance. This to me, is an area of support. This is resistance i like to adjust it to get the most number of touches this one i'll adjust this down slightly lower. At this point, you can see right.

I have one touch two, three, four and five. You can consider this as one as well. If you, if you want to that's really, i would say no right and wrong here so for this one here i'll push this one slightly up higher. At this point i have one touch two and then three okay.

So, of course again i will leave out a few minor swing points like this swing low over here in this swing high over here, because again personally, i want to be trading the extreme highs and lows of the range and i'll give you i'll share with you. Why, right so, let's say, for example, price comes up into this area. This swing high over here, and if someone wants to go short right, let's say you go short. Let's say: price comes down.

You go short over here. You sell on the next candle open. Where do you set your stop loss? Do you reference it from this highs or you reference it from this heist or from this area over here? You can see that you know you're kind of stuck over here, because if you were to set your stop loss and reference it from this, let's say this heist over here: your stop loss is somewhere here and the price comes up higher, you're, technically cutting your trade Right into an area of resistance, which doesn't quite make sense, so this is the reason why i don't like to trade minor swing points on the chart, because my stop loss is usually somewhere at a level where a bigger resistance is at so i'd, rather just trade. The extreme levels, if i'm wrong, i know i'm wrong and i don't have to wonder: maybe i'm not actually wrong right now.

Maybe i should average into my losers down. No, no don't do that right. So now you get my point right. This is why i want to be trading uh, the extreme highs and lows of the range only and all the minor levels i leave it out completely okay, so this is how you draw support and resistance in the range market.

So now moving on. Let's talk about, how do you draw support resistance in a trending market? Okay, so when it comes to drawing support resistance in a trending market, here are the two things i look for number one. I want to identify the three most recent swing points i'll get to that shortly and number two i like to adjust it to get the most number of touches. So what do i mean by the three most recent swing points? So, let's say if the market is in an uptrend, the three most recent swing points could be the swing low.

It could be the previous resistance which become become support or it could become, or it could be support itself. So let me just uh show you what i mean so over here. Let's say this is a trending market. How do i draw my area of support over here right? You can see over here, i'll probably draw have it at this level here this one here and then this one here.

These three swing points is enough because, from the looks of this chart all right, i know that if the market should pull back right, it will likely come into one of these three levels. This one here here or here and i don't need any more areas, or rather all levels on my chart. Why is that? Because if the market, let's say it - comes back and re-test this swing low over here, i might not want to be buying, because at this point, if the market can collapse down all the way down lower, this uptrend could shift. It could not be in a range market or it has, you know, shifted into a downtrend right and if it's in a downtrend i might now want to look for selling opportunities selling into a resistance or selling at the swing high.

So this is why you know i don't have too many levels when the market is trending, because if the price could break this three levels that i've just drawn, if it breaks all these three levels, that i've just drawn most likely. What i want to do is to be selling right at previous support right, which could become resistance. I want to be trading in the direction of the trade and because of that reason right. This is why i usually have not more than two to three swing points on my chart right for trending markets.

So again, uh same concept applies. I like to adjust these levels to get the most number of touches, so i will probably shift this to here. So i get one touch over here and then one over here same for this one. Here i have one touch and two over here, maybe even three.

If i shift up slightly higher same for this right, i have one touch two, and if you look back over here, this is three. So let's have a look at dollar against the south african rand. How would i draw this uh support resistance right in this downtrend market? So again i try not to have more than three swing points. So in this case i would have you know one over here and possibly one over here and maybe one over here.

Okay, so at this point again, this would be the three swing points that i have on my chart because again, if the price could heat up higher and break out of this uh this resistance over here, i don't want to be shorting this market anymore. I probably want to be looking for buying opportunities, because this is now where previous resistance resistance resistance could become support. So there's no point me drawing every you know highs or resistance on the chart, because what's the point right, because if i want to be trading in the direction of the trend i want to know, where is the likelihood the price could pull back into and then Find trading opportunities there no point putting so many levels on my chart, where 95 of that i won't even bother with okay so again for this downtrend markets, i will likely have this uh three swing points on my chart and the way i would draw it again To adjust it to get the most number of touches, so this one i have you know one touch two and three. This one is one two, three, four five six right.

This is where previous support now becomes resistance, and then this is quite a new one. Where price broke below this area of support and then now this becomes resistance as well. So i have these three swing points on my chart and one last final example. This is dollar against the chinese yuan and the way i would draw this is again.

This is the highs. This is the lows, so adjust it to get the most number of touches. Possibly here, then this one here will take into account this recent loo as well right. So i have no one touch to touch here.

If you know one two and three okay, so this is how i draw my swing points for dollar against the chinese yen in this downtrend market and again, my logic is the same right. Why why not this drawing at this highs over here reason being is if the price can break out of here? I want to be a buyer, because this is where now previous resistance could become support. I want to be buying over here, i'm no longer interested in selling at this swing high or this swing high. No, i want to be a buyer, because now the market dynamics have shifted and don't worry, we'll get to the uh trading strategy portion later on.

How do you know time your entries and stuff like that? But for now i hope you understand. You know the logic right. Alright, that's that's science, right to how i draw support resistance for this trending market. So with that said, let's do a quick recap.

Number one right support is an area on your chart where buying pressure could step in to push the price higher number. Two resistance is an area on your chart where selling pressure could step in to push the price lower, and when support is broken, it could become resistance and vice versa, in range markets right. The way i like to draw support resistance is to identify the highs and lows of the range to draw my support resistance and for trending markets. I pay attention to the two to three more swing points on the chart and then i draw my support.

Resistance. Slash swing high swing, lows right on the chart, so at this point right you have to learn what support resistance is all about, and now the question is you know: when do you buy because you don't want to just blindly buy it support, because the market could Slice through or break through support right. So how do you know when the market is getting ready to move in your intended direction? So this is where i look for a confirmation right and i'll explain more in the next section. Now, let's talk about candlestick patterns because they are useful as an entry trigger.

In other words, it tells you when exactly to enter a trade. So you know you want to be buying at support right, because there is an area where buying pressure could step in and push the price higher. But you have no idea when exactly at support right. Do you buy.

So this is where candlestick patterns are useful. So candlestick patterns can be broken down, broken down into two categories. Number one is what they call the bullish reversal, candlestick patterns or the bearish reversal. Candlestick patterns there's another one right, which is an indecision candlestick patterns, but we won't talk about that because it's not relevant to to what we are doing over here.

So let me explain further what bullish reversal candlestick patterns is all about. So when you spot a bullish reversal, candlestick patterns, it's telling you that the buyers they are momentarily in control and the price could possibly push up higher because i'll show you why okay! So the first pattern that i want to share with you is what we call the hammer so just to run your truck run, you some basics right when you spot the hammer. This is the opening price. This is the closing price.

This is the high. If this is a daily time frame right, this is the high of the day, and then this is the low of the day. So if you see this on the one hour time frame, then this is the high right over the last one hour. This is the low over the last one hour and then and yada yada.

Okay. So what's significant about this pattern, is there is a story behind it? So imagine this right. Let me just you know, redo it. Imagine the price open right at this price point over here and then, when the market opened, the sellers right took control and pushed the price all the way down lower near this lows.

Right so again, assuming it's the daily time frame, pushing it near the lows of the day right, so you can imagine the the buyers right, they're getting smashed right by the sellers. You know getting overwhelmed by such strong selling pressure and after a while right, you know, while they are well, all hope is lost. Around things are looking so grim right: the buyers they find the strength to push the price all the way up, back higher and finally closing near the highs of the day. So you can imagine it's like a movie right.

You know the good guys getting beaten, getting trashed when all hope is lost, they think of their love for ones. They think of you know all the sacrifice they have gone through and then bomb right. They come up. You know super saiyan and they start.

You know beating the bad guys and the good guys so kind of similar to this uh pattern over here. This hammer pattern is, you know, buyers are getting overwhelmed and then they suddenly took charge and pushed the price closing near the highs of the day. So this is what the hammer represent. This is the story behind it and, of course, the hammer isn't the only way to represent this bullishness.

You have another one. What we call the bullish engulfing pattern and the story is similar, but this time around, it's a two candlestick pattern formation. So the first candle is a red bearish candle. You can see the sellers closing here near the lows of the day: okay and the next day when the market opened over here.

Okay, the buyers quickly pushed the price all the way up higher and then finally closing near the highs of the day. So this again is a sign of strength telling you that the buyers they are momentarily in control now moving on right, the opposite of bullish reversal candlestick patterns, is what we call bearish reversal candlestick patterns at this point. If you're wondering okay renault, how do i make use of these patterns to trade? The market? Don't worry we'll get to that later on in the trading strategy portion right, but for now just understand the concepts right that i'm sharing with you so for bearish engulfing pattern. Right, the first pattern that i want to share with you is what we call a shooting star.

So again, you can see over here. This is the opening price of the candle. This is the closing price. This is the low and this is the high.

So if this is a weekly time frame candle, then this is the high of the weight. This is the low of the weight. It's the opening price of the weight. This is the close of the weight.

If it's a daily time frame, then you just interpret it accordingly. So what's special about this candlestick pattern? Is the story behind it? So let me walk you through the story behind it, so you can see over here market open at this price. Okay, then the buyers quickly took charge. They pushed the price all the way up higher.

You know all the way up higher and when the buyers start, they know right, win the war right now, things are looking good. Suddenly the sellers took control right and pushed the price down all the way down, lower closing near the lows of the day over here. So this is kind of like you know you receiving right an exam paper that you thought you'd do badly. Then you, you got an a right wow.

I got an a for exam amazing and it's only afterwards right. You realize that it isn't what you think right: it's actually a for absent, you'd, even turn up for the paper. So how can you get a good grade? A so this is where your world come crashing down so same thing over here right for the shooting star right you, the buyers were in control, right thinking that they, you know on cloud nine. They have won the battle.

Only to realize that you know the the seller suddenly came back in and pushed the price to close near the low of the day, all right and, of course, there's another one is what we call a bearish engulfing pattern, a similar story, but this time around it Uses two candlestick patterns to represent first candle, the buyer's right in control, closing near the highs of the day and on the second candle's right. When the price opened, the sellers quickly took control and pushed the price near the low of the days right. In other words, right now the sellers they are momentarily in control. So let me walk you through a few chat examples to see how it looks like right in the real world of trading, so this one over here is uh aussie dollar daily time frame.

So, let's see if you can spot right some of the familiar patterns which i've shared with you earlier over here. It's a hammer notice right this price rejection, how the sellers at one point in time were pushing the price near this low before the buyers stepped in and pushed the price up closing near the highs of the day over here then over here we have what we Call a bullish, engulfing pattern notice how this candles engulf it covers the body of the previous candle closing near the high of the day over here so notice. This green candle, this green bar over here this green portion. It has covered right, the red portion of the previous bar, so this is what we mean by a bullish engulfing pattern.

The body of this candle, the body of this candle, has covered the body of the previously candle okay and over here we have uh. I wouldn't call this a hemorrhoid is what we call a dragonfly doji. So in candlestick patterns there are many names, but they, if you understand the story behind it right all these names, don't really matter. If you look at the dragonfly doji, you can see the price open at this price.

Then the sellers took control and pushed the price down near this lows over here and then remember, right, uh, the good guys they always win in this case right so before the price. Uh, suddenly reverse stronger by the buyers and push the price to close near where it opens. So you can see that for a dragonfly doji right, the opening price and the closing price right are usually near the same level. Okay, so again the meaning behind this dragonfly doji and a hammer is similar just that they are different names because of the different closing price right relative to the range of the candle.

So looking at more, we can see over here we have a bearish engulfing pattern. Over here you can see that this candle, it has covered the body of the previous day candle. This is what we call a bearish engulfing pattern. Then, over here we have a do.

We have a shooting star over here. Okay, then, this also right looks something like a shooting star, but this time around the shooting star. Usually it's a red color body, but in this case it's a green color body, but you can interpret the story similar as well. You can see that the buyers at one point in time they were pushing the price near these highs before the sellers to control and push the price lower, closing right near the lows of the day.

So, even though it's a green candle to me, it signals right price rejection, rejection of higher prices, and this is how you, actually you know, use candlestick patterns right to interpret who's momentarily in control and then know right when exactly to enter a trade. And this is something which i'll cover uh right now, so now that you've understood right what candlestick patterns it's all about right, let's combine right all you've learned so far support resistance and candlestick patterns right and find out how we can. Actually you know, trade, the markets. Okay, now let me walk you through a formula.

This is what i call the tay formula, this formula you can use it right to profit in bull and bear markets and across different markets, like you know, forex stocks, futures etc. So what is this formula about? So first part of this formula is number one trend. We are looking to identify markets which are trending, whether is it trending higher uptrend or trending, lower downtrend number two. We are looking to trade from an area of value, so you've learned earlier right, support and resistance.

They are in area of your chart and on your chart they are an area of value that you can trade off right. So, if you are, if the market is in an uptrend, you can look for buying opportunities at support. If the market is in a downtrend, you can look for selling opportunities at a resistance, and the third thing we are looking for is an entry trigger, and this is where candlestick patterns right comes into play. You learn that candlestick patterns signals right, whether the buyers or sellers they are momentarily in control right, and it gives you right a good idea to know when exactly to enter a trade.

So to illustrate this uh tay formula. It can be something like like this right. Let's say mark it in an uptrend series of higher high and pull back another higher high higher low hits higher pull back hits higher. So what you can look for is for a pullback towards an area of value.

This could be towards an area of support. So, in this case, could be this one here. It pulls back into this previous resistance, which becomes support, support. Then an entry trigger you can look for something like a hammer or pattern that you've learned looking something like this.

So when this happens right, you can see that you have a number of factors in your favor number. One uptrend number two area of value in this existing uptrend and number three. You have an entry trigger telling you that the buyers they are momentarily in control and the market could possibly you know, hit higher from here. So what you can do is just to enter on the next candle open.

So let me walk you through a few chart. Examples - and you can see how this formula is robust in the sense that there are different types of area of value that you can trade from. So first one over here is a canadian against the japanese yen. So walking you through number one.

What is the trend trend is up number two: where is your area of value? So, if you can see over here, let me just bring back you in time. This is an area of value at this support area here, okay, so number one. If the trend number two, you have this area of support and number three: do we have a valid entry trigger telling us that the buyers they are momentarily in control? And if you look at this candlestick pattern, we have a bullish, engulfing pattern, right, look at the range, or rather the body of this candle, yes engulf it has covered the body of the previous candle. So what you can do is to enter on the next day.

Open somewhere here, okay for stop loss and exit i'll, be brief about this right. So for stop loss. Usually we want to set our stop loss right where, if the price reaches it, we know that support has broken. It has given way so i'll, say around the 85 dollar price point is a good level to set your stops and for targets.

You can see that this is a potential. This is a swing high. Oh, this is a resistance, so you can look for targets right somewhere around the 88 price point, so this is again right how the t formula works. Now, let's move on to another example, this one here is the aussie against the swiss franc.

This is on the eight hour time frame, so it just goes to show right. The strategies and concepts that you have learned right can be applied across different time frame as well. So let's have a look right. First thing: first, the tay formula number one: what is the trend? I'm sure you can agree with me right that this market is in an uptrend, a series of higher highs and higher lows: higher lows: higher low higher low higher low and higher high higher high higher high, so uptrend number two area of value.

Okay, we can see that this market coming into this area of support that i've, just you know, highlighted so yep. It's at this area of support and number three: do we have a valid entry trigger to go along? So if you look carefully, let me just remove the lines you can see that we had a bullish engulfing pattern that form up over here right notice, how this candle has engulfed the body of the previous day. Candle this candle has also you know. Engulfed has covered right, even the highs of the previous day candle, so this is a sign of strength.

This is a sign that the buyers are momentarily in control, so the way to trade - this is what you can do - is just to simply enter on the next day, open, so the candle open here, the next day, your stop-loss again, i like to set it a Distance away from support right, so i don't get - you know, stopped up prematurely because the last thing that you want to do is to set your stop loss just before this low and then for the market to spike down lower and then continue up higher. So how many times has it happened to you? So the trick right to this is to set your stop-loss right away from support. So let's say you know this is your area of support that you've highlighted pardon my wavy uh support right but yeah? This is the area of support. You can set your stop loss right, pretty much somewhere about here so again, you're giving it some buffer right from this low to here right.

So your your trade rate has more room to breathe. As for target, you can, you know, look to take profits right before this area of resistance because, as you know, right resistance is an area where selling pressure could come in and push the price lower. So if you want to look for targets to take profit right, i would say before this area of resistance right is not a bad choice and in this case right this market, pretty much uh will have. You know got the news stopped out, as you have seen over here, so this is again right to highlight you that you know you can have all the stars.

All the factors are aligned and you'll still encounter losing trade, so this is the reality of trading okay. So, moving on, let's have a look at another example. This one is dollar against the norwegian chrono eight hour time frame. So again, what is the trend? That's the first question we are asking, so you can see that this market is in a downtrend series of lower highs and lower lows.

Downtrend second thing: right: did the price come towards an area of resistance? So, since you know that the trend is down, we want to be selling at resistance, so in this case right you can see again. Let me just highlight to you using this rectangle tool. The price did come into this area of resistance, so notice here. This is previous area of support, support, support support and when the price breaks below support, what does it become? You know right.

If the price breaks below support, it could become resistance, and this is what happens next right. Price be elected as our resistance, previous support become resistance. Market tanked, down lower, came back into resistance, hit down lower, and now we are back here at resistance once again. So, in terms of the trading setup in terms of the entry right, is there a valid entry trigger to go short? So i wanted to point out to you over here.

This is where notice this candle over here the price spike through above resistance and then close in the middle of the range. So at this point right when i see this candle, when i see this price action, let me zoom in on this candle here. Okay, i wouldn't be looking to short the market just yet, because it isn't telling me that the sellers are coming in to push the price lower. What it's just telling me is that you know the buyers are still in control right.

They have managed to. You know push the price near. These highs couldn't close exactly at the highest, but they managed to close in the middle of the range right between these highs and lows. They managed to close in the middle of the range so not too bad right there.

I would say sellers coming in, but not a lot and they are still buying pressure holding you know the price up higher. So at this point right, i wouldn't want to shop the market. Just yet i'll will look to see the next day. Price section see the next day, candlestick pattern right and see what it tells me.

So in this case, what i saw is that the sellers are coming in right to push getting ready to push the price lower. How do i know that? Because if you look at this candle right, you can see the price open here and then he tried to break out higher once again. That's why he had the highs of this day, but the sell the buyers couldn't tr couldn't push the price any higher. What happened is the sellers then step in right and drive the price lower, closing near the lows of this day over here? This tells me the sellers, they're momentarily in control and i'm more convinced right to short the market at this point in time.

So what i'll do is, i will go short on the next day, open so the next day the candle open. Here i will look to short at the opening price. Stop loss right a distance above this high somewhere about eight four five would be a reasonable stop loss as for take profit level, i noticed right that hey. You know this could be an area of support.

Over here prices, you know, came in once bounced up higher came in here bounce up higher. So again, if the price were to come down lower, there's a good chance, it could bounce up higher. This is what support means. So if you want to be conservative about it, you can look to take profits right just before this swing low over here to be conservative.

So in this case a true enough right market came into this area of support and then it bounced up higher. So this is how you utilize the concepts of support resistance to better time your entries, as well as you know, to know where to take profits. Okay, now just one more example before we conclude this training so now i want to bring you to the world of stock markets right, so this one is very cell corporation. The ticker is vcel, so the thing here is to share with you right that the concepts and strategies that you've learned right can be applied towards the stock markets as well the futures market and across different time frame.

So the concept is the same. The first thing that we're going to do is ask ourselves: what is the trend? You can see that this market is in an uptrend number two, since you know that the market is in an uptrend right, then you want to be looking to buy near an area of support. So did the price come towards an area of support so using this pen tool? Let me just draw this area of support that i've highlighted okay. So this is an area of support and yep.

The price did come in towards this area of support. We have it number three: do we have a valid entry trigger right to tell us it's ready, it's a time to enter the trade right now, so we use candlestick patterns for it, and in this case we had a bullish reversal, candlestick pattern over here: a bullish Engulfing pattern notice how this candle engulfed the body of the previous day candle. So when you see this right, you can look to buy on the next day, open, okay, so the price open over here. This is where you can look to get long, and your stop-loss right can just go a distance below this low somewhere about 44 dollars.

Okay, as for target again, you can see this is a swing high. This is where selling pressure could be lurking right, getting ready to push the price lower. So if you want to be a swing trader to just capture one swing, this is a potential target right that you can look to take your profits and before i end right, let me just share with you one more example. So this one here is the platinum market.

This is platinum, futures and again. The thing here is to share with you that you know these concepts can be applied across different markets, different instruments. So this one here is platinum, i'll, just go through quickly price in an uptrend come into this area of previous resistance resistance which become support. Okay, then we have a bullish entry trigger you notice.

Here we have a bullish reversal, candlestick pattern on this day over here. Right, you can look to enter the next day open. Stop loss will go below this low somewhere here possible target just before this highs over here and by the way. If you've enjoyed this training so far, then you will love right.

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