SUPPORT AND RESISTANCE PDF
The Bear Fundamentals - This content was sourced from babypips, for more in depth information visit their website. 1. Support and Resistance. SUPPORT AND RESISTANCE. Stocks are rising. Stocks are falling. If you watch or read financial news reports, you have seen or read people talking about. Forex Support and Resistance levels is the most important concept in trading you will ever learn and master as a professional or full time trader. That is why.
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It has been stated that the simplicity of the market is its greatest disguise. The concept of “Support and Resistance” (S&R) in the trading markets dates back to the. The support and resistance strategy will help you in trading support and Grab the Free PDF Strategy Report that includes other helpful. Support and resistance lines are one of the basic tenants of technical analysis. normally used for establishing support and resistance is by finding high and.
Because these are the biggest lies about Support and Resistance trading strategy. The market reverses at Support because there is buying pressure to push the price higher. The buying pressure could be from Institutions, banks, or smart money that trades in large orders. If the market keeps re-testing Support, these orders will eventually be filled. Pro Tip: Higher lows into Resistance usually result in a breakout ascending triangle. Lower highs into Support usually results in a breakdown descending triangle.
You can download it here for FREE. Maybe it comes from my poor knowledge of english. So I have a question connected to Support and Resistance trading strategy. I thought it is a sign to the price will go higher. Instead of the price went down.
The 7 Types of Support and Resistance You Need to Know » Learn To Trade The Market
Always use these concepts in the context of the trend. Hi Rayner, Thanks for teaching people stuff that will improve their trading. What I have learnt from this article is worth more than what some people package as a training course. I really enjoyed it. Glad to hear that. Hey, Hey!! Hi Rayner, thanks for everything you do for all of us!
Your a great guy! I first check and draw my sr lines on the weekly with a red line then daily lines with a blue line, then my 4 hour lines are orange and trade off of the line that gets the most touches before the open……. I am just recently having some progress on ranging markets with this plan. I have found it to be very good for me when I set a profit target. I know my risk to reward on this is out of wack. Thanks again! God bless you and your family!!! Great info Rayner….. I definetly owed you an edge in trading knowledge ….
It would be fine if you share it in the form of PDF. Note that your views and info about trading is very helpful to the trader like. Thanks rayner. Its good way to think SR as an area instead of lines. Now i will consider in the same as you told and will tell you the difference comes in my trading. Thanks again Rayner. As always I find your articles, downloads and videos very helpful.
Keep up the good work. Thanks Rayner, through ur article and email…. I learn a lot of thing about about market trend, candlestick, market overview, SNR and many more. Your lesson much simple and easy to understand for newbie such as i. Thanks for ur guide about 3 things we must have to be a consistent trader.
Hope this lesson will be continuously for the future….. Thanks a million pips! I am using upthrust and springs methods plus sma 20 and 50 sma during trending period.
Quite similar to your idea in SR. Can you please post about moving averages, RSI Levels and others also to find out better entry and exit points. Hi, Thank for sharing. May I know how do we define how wide the Support and Resistance to be? Absolutely true! Support and resistance are not a single line. Thanks you! Always excited to watch your every lesson. Thank you again for an awesome article. I have to work on it though. An error occurred during a connection to el2.
Error code: The page you are trying to view cannot be shown because the authenticity of the received data could not be verified. Please contact the website owners to inform them of this problem. HI Rayner,I cant thank you enough for the information you have given out free like this!!!
God bless you. I have learned from your u tube videos about how to trade with the build up. Today I learned how to place the SL. As a new comer for forex and loser this is good lessons for me. Thanks a lot. I am continuously reading your lessons. Thanks again. Backtested Dynamic Stops against my closed positions.
It would have added considerabley to my profits. In addition I could have used SR range as an opportunity to add on an up day and red flag confirm complete breakdowns. As always your tutorials are keepers! To us PA is the King, Queen and all in all in the market place. I begin by drawing my SR lines on the Bigboss monthly fine tune and add more on the Boss weekly fine tune and add more on the Worker daily. I place my trades from the Worker depending on the direction given by the Boss and Bigboss.
Thank you. Hey Rayner! You said that you must wait for the candle to close beyond the support or resistance levels to confirm a breakout but some examples here show the fact that price did close beyond the support and resistance area with consolidation even forming. Yet, after sometime fails and goes back to trade in the range. Can you please explain?
Thank you for your teachings. Your Pro Tips are very helpful. Your understanding of what is happening with price action and the possible scenarios that can result from it. I have a question which might be two part. This post might help… https: Great and helpful stuff you put up here. I have been having issues with this strategy because i am always stopped out of the trade which has been giving me headache and made me start researching again till i came across this post ……i will put everything you taught into practice and share my success with you, i hope this solve all the problem.
Support and Resistance Zones - Road to Successful Trading
Awesome post. I have learned a lot about SR. Thanks for all your help and support. Hi Rayner I have two comments please.
Is there an indicator that can draw SR? Or does it always have to be done manually by the trader? Hats off to you. Hi my name is Mhlonipheni from South Africa I wait for bullish engulfing candle to form at support area and enter long at the break of the high of the engulfing candle stop loss 80 pips below support level. For bearish I do the opposite daily time frame. My experience tells me that the probability of multi-tests of SR levels leading to break-outs increases by dint of the frequency of the tests relative to the time-intervals between them; i.
Cheers Joerg. You can check this out… https: Hi Rayner, i Read Your This artical.. Thanks a lot God Bless You. Hi Rayner! Thank you so much for sharing all the valuable content, which btw is like a gold mine to us beginners! I do have a small doubt..
You are always rocking. A Complete Guide to Trend Trading. Price Action Signals. I hope you enjoy this lesson and refer back to it often, as it is jam-packed with helpful explanations and examples….
Perhaps the most important support and resistance levels are traditional swing highs and lows. These are levels that we find by zooming out to a longer time frame, typically the weekly chart or possibly even monthly. What we want to do is simply identify the obvious levels that price either reversed higher or lower at and draw horizontal lines at them.
Here we can identify major support and resistance levels, trends and trading ranges…. I have a good video on this topic of mapping the market from higher time frames to lower, be sure to check it out.
One key point to remember is that when you zoom into the daily or even the 4 hour or 1 hour, you always leave the higher time frame levels on your chart as they are very important. This is referring to the phenomenon of a market making higher highs and higher lows or lower highs and lower lows, in an up or downtrend.
This also gives us a way to map the trend of a market — when you see this stepping phenomenon you know you have a solid trend in place. These levels are good entry points as well as points to define risk or stop loss points.
You can place your stop loss on other side of these levels. For example, in the chart image below, we see a clear downtrend in place. We can look to sell or buy at swing points even if they are not part of a trend. Markets spend much of their time consolidating and in trading ranges, so we should be able to find trades within those market conditions, not only in trends. We can simply use the most recent swing high or low as a risk point to define our next trade, which you can see in the chart example below.
In the image below, notice that price broke lower, down through support, then it stayed contained under that level, which was then acting as resistance. We could look to sell at that level or just below if price stayed contained below it.
In this way, that level is defining where we will look to take our next trade and we know if price moves beyond that level our trade idea is invalid, so placing our stop loss just beyond that level is obvious. We can also use recent swing points as profit targets. In the example below, notice how we could use the recent swing lows as profit targets. What I mean by dynamic is moving levels, in other words, moving averages.
A moving average moves up or down according to what price is doing, and you can set it to consider a certain number of bars or time periods. My personal favorites are the 21 and 50 period EMA or exponential moving averages. I like to use them on the daily chart time frame mostly, but they can also be useful on the weekly charts. We can watch for price to test the moving average after breaking above or below it, and then look to enter at or near that moving average.
Ideally, the market will have proven itself by testing the level and bouncing previously, then you can look to enter on that second retrace. Here is an example of the 50 period EMA being used to identify a downtrend as well as find entry points within it. Ideally, we will look for a 1 hour, 4 hour or daily chart price action sell signal as price nears or hits that level on a retrace back up to it in a downtrend like this….
The 21 period EMA can be used in a similar manner as we see below.
Support and Resistance Trading Strategy — The Advanced Guide
So, in a less volatile market you may wish to use a shorter period ema like the 21 rather than a longer one like the This is partly a self-fulfilling event and partly just a result of normal market dynamics. Trading range support and resistance levels can provide many high-probability entry opportunities for the savvy price action trader.
The main idea is to first identify a trading range, which is basically just price bouncing between two parallel levels in the market, and then look for price action signals at those levels or look to fade the level on a blind entry. By fade the level, I mean if the market is moving up and at the key resistance of the range, look trade the opposite way, i. Or, you look to buy the support of the range.
You can literally do this until price clearly breaks and closes outside of the range. This is a MUCH better approach than the one most traders take in trading ranges — trying to predict the breakout before it happens and constantly getting whipsawed as price reverses back into the range.
Note, in the example image below, we had a large trading range as price was clearly oscillating between resistance and support. We could have entered on the second test of resistance short or on the second test of support long either blindly or on a price action signal like the pin bar signals we see at the support below. The final type of support or resistance we are going to discuss today is event areas. Event areas are key levels in the market where a major price action event occurred.
This can be a big reversal or clear price action signal either of which led to a strong directional move. In the example chart below, you can see a clear event level that was formed after a strong bearish reversal bar on the weekly chart there was also a large daily chart bearish pin bar there.
As price approached that level on a retrace some months later, we would have wanted to be sure to have that level on our charts as it was a strong level to look to sell at either on a blind entry or on a 1 hour, 4 hour or daily chart sell signal. I hope you have enjoyed this support and resistance tutorial.
We have gone over the major types of support and resistance and how I use them as indications of market condition trending or range bound , levels to look to buy or sell from, levels to define risk and as a framework to understand what the market has done, what it is doing and what it might do next. When you combine a solid understanding of support and resistance levels with price action and market trends, you have the triumvirate of trading: S, which you can learn much more about in my Price Action Trading Course.
Any questions or feedback? Contact me here. I enjoyed reading this material. As a newbie to Forex Trading, after reading this, i dont want to read any other material on SR, you have said and written it all. You are indeed the bomb.
Nial- Your site[free] or not , is the best there is. Always informative and a pleasure to visit, newbie or advanced traders. Thank you for time and effort. Thanks Nial. This is by far the best support and resistance tutorial I ever had! Nial is simply the best!!!
Thank you for sharing your knowledge about price action. You are truly an inspiration to all aspiring trader. I just want to ask, how do you distingusish from drawing a key support or ressitance and just support or resistance?
Where do you base drawing a key resistance or support using the daily or weekly timeframe? Nial I must compliment you for yet another eye opener,I have just added the 50 EMA to my charts and what I see is unbelievable,May the Lord bless you abundantly.
This is one of the best eye opening articles needed for a successful trading career.. Pls keep it coming. Hi Nial, thanks for this great lesson. I have a question. Most professional traders use trend lines as support or resistance as well.
It is very useful one to me. I got new things on Sup and Res. Thanks a lot Mr.
It made me much eager to learn more about Price action. Bless of the load Buddha! You;re a foundation for new and used experienced traders world wide. Thank you again for what you do. Thanks Nial for this great lesson. You have completely changed my trading view so far. It has dramatically improved my trading results.
Thanks Neil.. From a technical point of view, this is your best article Niall. Its the best article explaining support and resistance I have read. Your email address will not be published. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information.
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Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. April 'Easter' Special: Search for: SignUp For Free. Swing point levels as containment and risk management We can look to sell or buy at swing points even if they are not part of a trend.
Ideally, we will look for a 1 hour, 4 hour or daily chart price action sell signal as price nears or hits that level on a retrace back up to it in a downtrend like this… The 21 period EMA can be used in a similar manner as we see below.
Event area support and resistance The final type of support or resistance we are going to discuss today is event areas. Conclusion I hope you have enjoyed this support and resistance tutorial. April Special Note: Checkout Nial's Professional Trading Course here. Douglas June 11, at 3: Tsitsi Tete March 10, at 2: Indeed, thanks very much Reply.
Thien Le January 31, at 7: Thanks very much! Itthichet Boonpannaruk November 28, at 3: Thanks a lot Reply. Panthep November 23, at Great knowledge for me. Ferdinand Abia November 19, at It is nice Reply. Segun Adepoju Pastor November 16, at I enjoyed reading your post, it really helpful.
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