Now, moving on number two area of value, so you've learned right. What is market structure earlier? If the market is in an uptrend, you want to look for buying opportunities, but here's the thing just because a market is in an uptrend doesn't mean you blindly hit the buy button. No because the trend right could be about to make a reversal, it could could be about to make a pullback. So this is why you want to look for this next.

Second thing: an area of failure, so this is like you know, going on a date with a girl for the first time doesn't mean you go on a date once you're going to marry her because you don't not know what type of person is she does. She really like you, do you really like her? You know you need more confirmation and it's the same for trading, we're looking for more confirmation to give us clue that this is a good time to enter into an uptrend okay. So the second thing is what i call an area of value, so this in essence right tell you tells you right where to buy or sell so market structure. Previously it tells you what to do.

Should you be looking for buying opportunities or selling opportunities? By does it mean hit the buy button? No, you are only looking for opportunities, whether to buy or sell for this one. It tells you where to buy yourself. The key word here is where, where on the chart to buy yourself, so area of value really is about this to help. You pinpoint the area on your charts to look for trading opportunities and to to look for areas of value on your chart.

There are numerous tools that you can use, but for me personally, i use support resistance and moving average often, and so this is the two things, the two tools that i want to share more with you, so support and resistance, otherwise known as sr. So what is support and resistance? So here's, my definition of it, so support is an area on your chart where buying pressure could step in, i didn't say, mass right, because in trading nothing is guaranteed. Trading is all about probabilities, never a certainty. So it's an area on your chart where buying pressure could maybe come in to push the price higher.

So it looks something like this. Let's say market is in the range, so support is at near the lows of this range. This is what we call support right where buying pressure came in and pushed the price up. Higher buying pressure came in push the price up higher support this year.

Buying buyers came in and pushed the price up higher. So let's say now: price is at support. What's gon na happen go up? No, it could also go down okay. So this is why i say that it's an area on your chart where buying pressure could step it so next resistance.

This is an area on your chart where selling pressure could step in so again, this is an area of resistance over here where the price came up, hit, down, lower, went up, kept down, lower, went up and what happens came down lower. So again, anything can happen in markets, it can go up, it can break out of resistance or it can face selling pressure resistance and then reverse down lower once again. So this is why the word is could could step in. So now that you understand what is support and resistance, so in essence, right support is where buyers could come in and push the price up.

Higher resistance is an area on your chart where sellers could come in and push the price down lower, and another thing to add is that when support is broken, it tends to become or it could become resistance. So let's say this is support. Okay, so support support. Support right previous support could now become resistance right where advice where price could face selling pressure and then continue lower down for from here, and vice versa.

If resistance is broken, that area could now become support. Let's say this: is resistance up down up down up down up breakout, come back previous resistance, resistance resistance could become support and the price could possibly hit up higher from here. So let me share with you a few charts, so you can kind of like let this concept sink in to your head. So first one here is pound canadian.

So if you look at this uh weekly time frame, chart which i've marked you can see, where is your support and resistance area support right, tested once twice three times four times and your resistance tested once over here, and this is why i said it's an area On your chart, if you look at this over here, the price didn't respect this level to the p. In fact, you break out people thought it was a breakout and then came back collapsed back into the range once again. Okay, so if another one over here, almost touching almost touching it broke out, went back in the range again and then this was almost near to the pit and then went back into the range again. So this is why we are dealing with an area, but the reason why i draw support resistance as lines is because it's my habit, it's something that i've been so used to doing.

But if you don't want to uh to to face this problem of you know treating this as a a line or whatsoever, you can use a tool right. I think it's called the rectangle tool to make your life easier this one over here, so what you can do is just you know, treat this as a box and area. You can just draw it like this, like an area, if that makes your life easier same for this one over here. Right draw it like this to kind of know, better interpret it, but again, as i've said right, my preference is to use a line, but if you think a box method would make more sense, for you feel free to go ahead next, one platinum.

So in this one i want to share with you the eight hour time frame, so you can see over here the concept that i've shared earlier resistance right. That's that one's tested twice almost three times. Fourth time here. Fifth time then, price breaks out if price breaks out of resistance.

What could possibly happen? Previous resistance could become support. Buyers could possibly step in here right to push the price up higher. In this case, it did happen, one more example, or rather a second last example. This one here is euro against the aussie dollar.

This is an area of support tested once tested twice came back here, consolidate a little breakdown. Re-Test previous support becomes resistance head down, lower re-test this same area of resistance and then continue to grind kind of lower around. Here so again, this is how support resistance looks like on your chart and again i didn't draw the full thing. I just wanted to point out the obvious one to share with you the concepts that i've mentioned, but really, if you want to draw another one i would say this would be another level that you could look at this heist over here.

Okay and one final example, this one here is a bitcoin just to illustrate to you that you know hey the concepts that i'm sharing with you are can be applied to different markets as well. So if you look at this one over here, can you see this area of support? Okay tested almost here almost the first time? Second, third, fourth, fifth, then, what happened price broke below support? Okay broke down great, so, as you know, right, if price breaks below support, what could happen? Previous support could become resistance, which happened over here. Previous support price breakdown became resistance and again support resistance. They are an area on your chart, so this is why you shouldn't expect the price to reach a particular dollar amount or exact same right and reverse from the no it's an area it could exit by a lot it could exit by a little bit or you Can undershoot it right, doesn't even touch it and then reverse from there? Okay, so you can see what happened next right for bitcoin price continues down lower and it retains right.

It's going to retest this area of resistance and watch what happens. It didn't respect this. This area that we had drawn earlier, in fact it went deeper right to re-test almost this heist over here, so you can see. I just pulled it back out.

Okay, so now so at this point, right support resistance, it's kind of fluid, it's dynamic! You have to make adjustments to it from time to time. So if i was to look at this chart right now, okay, i wouldn't leave my line on my area of resistance. Here i might shift it up higher right to take into account right. The recent price move, so this one now would make more sense because it tested this one here once and then twice over here.

So, let's see what happens next then price, i'm going to zoom out a little bit price, then re-test this for a third time over here and then it finally broke out. So price has broke out of resistance. So, as you know, if price breaks out of resistance, what could possibly happen? Previous resistance could become support right. Previous resistance could now become support.

Buyers could possibly step in could step in and push the price up higher, which he did in this case, and, of course, all these charts are cherry-picked right. Just to you know make sure that the teachings the concepts that i'm teaching you right are crystal clear in the real world of trading right. There are things that often things will not go away, and you know you have to be prepared for it. You.