Support and Resistance Didn't work Till I Discovered This SECRET

I really sucked that tree when I first started out but over time I started to discover things about support and resistance that I use today are the foundation of what make me a successful Trader and I want to pass on you the five Concepts that really make or break a support and resistance level if you can use these Concepts every time to draw your support and resistance levels you are going to find levels that hold a lot more often which will in turn make you a lot more profitable of a Trader these Concepts can work on any time frame or any Market if you can learn to read a chart you can learn to understand any Market you could go and trade flowers if there was a chart about flowers now to start things off I like to wait for the market to make at least two swings in the same area to even consider a level if you go around just drawing random levels everywhere the market has a swing there's no way of confirming that there's actually a good support or resistance level there and so waiting for 2 two clear bounces is the best way to find a strong level initially and so that's one really important thing is you want at least two touches in the market now a huge thing when it comes to trading that a lot of people make the mistake of and I made this mistake initially as well is drawing too many trend lines keeping track of too much in the market and what I mean by that is just drawing trend lines off of every single move and so what this does is it clutters your chart and gives you something called analysis paralysis the whole idea of this is that if there's just so many lines on your chart like this how do you determine where to buy and sell how do you determine where good profitable trades are when your thought could be oh I should buy here there's a support level here but I also have a resistance level drawn here as well what do I do and so a massive thing that improves my trading is taking away all the little support or resistance levels and focusing on the Extremes in in the market it's so easy to want to trade a lot when you're Trading so easy to get caught in the Trap of wanting to trade a lot but at the end of the day taking less trades is way more effective because it's less likely for you to make mistakes and you're concentrating on the areas in the market that are more likely to have stronger moves you're staying out of all the crazy back and forth that can be in the middle between support and resistance and you're focusing on the more profitable areas something that drastically improved my trading off of support and resistance levels was treating them like zones instead of a specific level if you're waiting for the market to bounce off of a specific line you're going to be waiting a long time but if you draw support and resistance levels like a Zone you're going to be able to see a lot more potential bounces in the market because the area you're looking for the market to bounce is a lot bigger and in reality that's what I have seen over my years of trading is the market is way more likely to bounce in a Zone it very rarely will go eggs exactly the specific price you can even see here we have a really nice bounce here and the market came back and pretty much touched this one perfectly here but if we draw that more the market broke through that level and if you were just drawing a line maybe you would have thought that that was a breakout of your support and it was over and then this little bounce right here that never even came close to your level down here but if you draw things like a Zone you have way more ability to see that oh the market came into my zone here here and here and of course it was in the zone down here as well and so how I like to draw these zones is I like to see just like before with levels I like to see two bounces and so I think this is two clear bounces right here and then I just like to see where the market was kind of chopping around at that area and of course I want to take into account the extreme and so I'd like to drop pretty Loosely with these because again drawing levels or trend lines in the market is one 100 up to interpretation you do not need to be exact with your level but the main thing is understanding where the market is and so off of these two swings here I think we have a pretty good idea that there is a support level down here and then with that you can say going forwards okay I can take a trade off of here when it shows a quick reversal and it has come down to that level and then down here as well and as well right here before the market really took off in this direction and then on the flip side as well you can do that from the highs I think right here is two pretty solid reversals the market is swung down twice and so taking into account that high right there and then just kind of where the market initially reversed I think you have two pretty clear areas where the market came up to the zone and failed off of and then made a really big reversal down and so that's how I like to use support and resistance I think zones are the way to go and even here you can see that well the market broke out of the Zone briefly but it ended up failing back in so that's what I like to call failed breakout and the market in reality held that zone it's okay if it breaks it by a candle or two or buy a little bit of price movement but as long as it really holds it like this you can say that that resistance zone is holding again the whole idea that we're trying to do with these levels is just understand where the extreme resistance or support levels are in the market so we can take either shorts off of the highs and the resistance levels or buy off the lows and find consistently strong areas where the market might reverse and give us a solid trade that's the whole idea with sticking to these extremes is we don't get bogged down trying to figure out where the Market's going to go in the middle of this range we have right here that is very very hard to do and it's just not worth your time and energy just focus on the extremes and you'll be a lot more profitable now another added layer is something called Supply in demand you will see whole other videos that talk about this and all it really is is you're just looking for a very clear reversal off of that area so what I mean by that is our initial sell-off that we had right here when the market was developing this resistance Zone was very very strong if we zoom in here at these two swings you can see that the first swing the market had a lot of bearish bars and then there was an attempt at recovery but then the market had a very big sell-off again and so what that shows us is that there are strong sellers up here especially when there was a really strong bullish move right here this candle right here is really big but the market ended up reversing that very quickly and so I think that gives you even more confidence in saying yeah I think I can draw a resistance level off of these two swings that we had right here in reversals and then going forwards as the market comes up and touches this again looking for a reversal off of that zone and you can see the market pretty much did that It reversed very clearly off of that level and then on the flip side you can say the same thing for drawing support levels the market had a very clear bounce off the lows here and then when it came and touched it again wasn't as strong but it had a pretty clear bounce as well and especially with this third bounce we had off of the Zone down here it really bounced off of this Zone with a lot of strength so the whole concept of that is that it's showing that there are a lot of people that want to buy when it gets down to this Zone and so it gives you the expectation that this is going to be an even more solid support level or resistance on the other side and that's all we're looking for this is much larger Traders than us they can actually move the market and if they are wanting to buy off of an area down here and they're gonna buy every time it comes down in this area that's probably good for us to pay attention to because anytime it gets down in this area well it's likely to find strength and may end up making a larger reversal off of that support level now add another layer of confidence onto your support and resistance levels what I like to do is actually go out to a larger time frame chart than what I'm actually trading and so right here we're looking at a one minute chart and so zooming out to a 15 minute chart you apply the exact same rules we went over and so looking at where the market is right now we are selling off into the area where the market has really bounced quite a few times and so what I'm going to do is I'm just going to take my zone and draw a support Zone off of that kind of using these two bounces right here and really at this point you can say yeah this is pretty confirmed the market really likes bouncing off this area and so now that the Market's come down into this again well my assumption is that the market is going to bounce off of this area you want to apply the concepts the same and so as the market is trading you can see it's sold off here into an area where I'd say the market has bounced off of quite a few times and so I'm just going to draw a support Zone off of that because I think that there there's likely that the market comes down here and likely finds support we have these two initial balances here that are pretty solid but then also it came bounced off of it three more times after that and eventually this last bounce here kicked off a pretty big reversal or bullish move higher and so it's possible that the market just comes down here tests it one last time and then keeps going higher and so I think that this is a really strong area for a support and a potential bounce but then I want to zoom in on a one minute chart and look for an actual entry portrayed on a one minute chart and so now looking at a one minute chart this is actual live recording of trade I took off of that level you can see a clear support level that I've drawn off of a larger time frame and then all I'm looking for is a reason to confirm that the market is going to bounce off that level we always want to wait for a confirmation first and then we want to jump in and so that's happening right now this green bar is rejecting that red bar and so I jump in on a trade right there and bet then the Marcus is going to go higher in reality what we want to do is we don't want to just blindly buy off of support or sell off resistance levels that we see you need to wait for a confirmation the market was in a really steep downtrend into this support level and so we want to confirm and wait for the market to show that it's probably going to bounce off of that level and so that's why I like to get my levels off of a larger time frame and then zoom in to a smaller time frame because you can get a faster signal in a more accurate entry and so you're not having to wait for a signal to take a lot of time because on a larger time frame well the market could reverse and be all the way up here in 15 minutes and it would just show you one big bullish candle and that's not what I want to do right you want to jump in and when you spot the opportunity and get in and so for me I like to wait for this downtrend that the market was in to break and so I had a pretty clear downtrend line it broke that and so what we had right here was the market made a flush lower it was kind of the final attempt to keep going lower and then It reversed that really really fast and so that's what these kind of two candlesticks show right here is the market just made a quick reversal and then I like to think of this Candlestick right here this red one is its final attempt to go lower is essentially push lower this is the pullback here if it keeps going lower here it could just keep doing this but if it's gonna make a pullback here and actually reverse and go higher that's the start of an uptrend right a basic idea of an uptrend is it just higher highs and higher lows and I want to jump in as soon as it shows me that and for me that was right here when it did that and so this Market all of a sudden just started to take off in my favor and that's how I like to use support and resistance levels I move my stop to break even there and then I start to Trail it up as the marker really breaks in my favor I'm already up a ton of money on this trade and I don't want to let the barrier come back and knock me out and lose a lot of my profits and so I like to use a pretty tight trailing stop sure sometimes it'll come knock me out but in the end the main goal is that we made a good amount of money off of these levels and because I use a favorable risk reward I usually go for three or four times when I risk you know here was about my risk and then all the way up here if we just try and visualize that we're getting close to three or four times my risk and so that is a really good way to consistently profit as a Trader off of extreme support and resistance levels like this if you're gonna look for reversals because of course you're not going to be right all the time the market is difficult to trade we make mistakes don't read levels properly or the market just doesn't want to hold them sometimes they can fail but if you have a solid strategy this is the best way to profit from those levels that I have found over my trading career and so I move my stop one last time there and it knocks me out at about four times my risk and so if you want to learn every nut and bolt about this training strategy check out this video right here I go into every detail about how I find profitable trades in the Market oh wow oh

Channel: Riley Coleman

Views: 583,078

Keywords: live day trading futures, day trading strategies, futures trading, futures trading for beginners, futures trading strategies, trading strategies, trade ideas live, day trading live, stock market for beginners, price action trading, Price action trading strategy, price action trading system, price action trading live, price action trading for beginners, price action trading small account, trading price action, Trade ideas live, live day trading, scalping, scalping strategy

Id: JEG4x0CiU7I

Length: 13min 18sec (798 seconds)

Published: Sun Mar 19 2023