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This Special Indicator Will Help You Trade the Forex Market By Showing Accurate Trade Entries! See below the detailed description of the indicator that you will be receiving if you purchase today!
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This indicator works exclusively for the Meta Trader 4 Platform Tradingview and now Ninja Trader 7 and Ninja Trader 8! You will not believe the results we have been getting!
Enroll now... and give yourself the advantage!
👉 https://jvz3.com/c/396655/317960
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LearningTranscript
00:00Okay, before we get into more settings adjustments, like what settings you can use for different time frames and different
00:08currency pairs,
00:09let's get into support and resistance in a very simple way that I think anybody and everybody at any experience
00:18level in trading
00:19should be able to go in and analyze the market on the weekend or getting into, you know, periods of
00:29the market slow
00:29to do an ongoing organic campaign of ongoing support and resistance tracking.
00:37So what I typically do, I do it, it's very easy. I use two charts. I use the four hour
00:44chart, the H4, and I use a daily.
00:48On occasion, I'll go see a monthly chart and see, I mean, a weekly chart and see where there's some
00:55really big, you know, multi-year key levels
00:59but just in general, week after week, the two charts that I always use for core support and resistance tracking
01:08are the H4 chart and the D1, the daily. And how do I do it? Okay, I take a colored
01:16line, horizontal line,
01:17and I start paying attention to obvious areas of clustered support where there's been multiple instances of price attracted to
01:28an area
01:29and that area appears to be holding. Well, right away, let's look at where support was on this chart going
01:39back here
01:40into the month of September of 2017. We can see there was the big sell-off and we have price
01:49bounced off this area,
01:52consolidated a bit, and then traded higher. So let's say I'm trading, I'm getting ready to work some daily scalp
02:03setups,
02:03and I happen to be in a day where the market is trading back down to that area of price.
02:13Well, if I already have that level tracked and I'm paying attention to it, you know, that was a key
02:18area.
02:19Price had a huge move, stopped there, obviously was supported by buyers, and that price was rejected.
02:26And at no time going forward has price ever been able to go back and check, or I should say
02:34retest that area of support.
02:36And then suddenly on this particular day in January of 2018, price is down here testing, pressing through that area.
02:46So what would I be doing as a trader then?
02:50It's really simple. When I see the market retest key areas that it's achieved in the past, whether it's support
02:57or resistance,
02:59I pay attention to that. So how I set up my MT4 panel on my various screens is I have
03:08one set of screens that are all the key instruments that I trade.
03:12They're all the higher timeframe charts. Usually, I'm paying attention to H4 charts intraday.
03:21On the weekend, I'll go look at daily charts, and I'll make sure on my H4 charts, I have key
03:27price levels that I've tracked and I've determined on the daily chart added to my H4 charts so I can
03:36see those key levels.
03:38So in this case, on a day where I see price coming down and literally touching that area of price,
03:44if I'm on a lower timeframe chart,
03:48I'm going to be looking for two types of trade setups as I'm trading the pound dollar as price reacts
03:56to this price level.
03:57I'm going to be looking for the 15-minute chart, the 15-minute chart, the 30-minute chart, whatever is
04:03my primary chart that I go attack trade entries on.
04:09I'm going to look for growing momentum and looking for buy setups.
04:17So I'll be slightly biased to buy setups, looking for them on the pound dollar.
04:24I want to see price leaving this area of obvious prior support and now being retested.
04:32So that's the first thing I'm looking for.
04:35So if I see price lifting during the day, intraday on my lower timeframe chart, I'm going to be absolutely
04:44excited about getting in any of these days as price is not, at this point, holding and maintaining near this
04:54level of support.
04:55I'm going to look for price leaving that area.
04:58And why?
04:58Because if price can't break through, smart money will be in here buying it and driving price back away from
05:06that level.
05:07So that means I have a high expectation that upside momentum could really run hard.
05:14So I could get into a trade that could end up being a 6-to-1, 8-to-1, 10
05:20-to-1 on my runners.
05:21These are also situations where I'll tend to leave the whole trade on and try to get the whole trade
05:28to get 4-to-1, 5-to-1, 6-to-1 reward to risk.
05:33In my opinion, the two best ways to trade Forex are to trade price reactions to support and resistance and
05:44trading out of news.
05:46So not trading right when the second the news hits, but trading the high momentum moves that are typically produced
05:56by energy coming into the market as a result of a news event.
06:00Some countries' GDP numbers, some countries' central bank interest rate news, inflation numbers, all the key main economic reports.
06:12I would be looking for price on my lower time frame charts.
06:17So in other words, if I'm getting sell signals, I'm sitting on my hands.
06:22If I see price holding at this price level or above and I'm getting long signals,
06:28I'm more inclined to get in and attack those signals on that particular instrument that's reacting to a key supporter
06:36resistance level.
06:38The next thing I'm looking for is a breakthrough supporter resistance.
06:43What would typically be called like a breakout to the upside or a breakdown, busting through support.
06:49So if we're breaking through resistance and running up in price, I call it a breakout.
06:54When we're testing support, we're chipping away through it and we start accelerating, I call that a breakdown.
07:00Some people call both of those a breakout.
07:03Oh, well.
07:05If I start seeing price chipping through and then accelerating, now I'm looking for short signals.
07:12And what I'm looking for is I'm looking for what's called range extension, where price extends its range until it
07:20starts consolidating again.
07:22So usually you can get 80 to 100 pips on breakthrough of support.
07:28A lot of times you can get 80 to 100 pips intraday on a bounce off support.
07:35Breakdowns have nice extensions.
07:38Bounces have nice extensions, whether we're bouncing off support or bouncing off a resistance level or breaking through support or
07:48breaking out above resistance.
07:50That's why tracking support and resistance is critical.
07:56It adds a whole area of trade possibilities that have a lot of energy in them.
08:03So if I'm tracking eight instruments and I'm noticing that, you know, on one of the eight instruments that day
08:13is starting to react to a key support or resistance level,
08:17I'm Johnny on the spot getting ready on my lower time frame charts to take advantage of a bust or
08:23a breakthrough.
08:25Okay, let's go into objects list and let's get rid of these lines for a moment.
08:32And how, how do you track support and resistance?
08:37Okay, what you can typically do, I like to compress price.
08:42So let's say, let's, let's just say this was the hard right edge of my chart and I wanted to
08:47start tracking where I see key support resistance going from the right side of my screen to the left.
08:55So right away, obvious, some areas I can see the highest point from right to left is this pivot right
09:03here.
09:04Now we're on a four hour chart.
09:05So this is a prominent area.
09:09Going back from that, my first near term area of support, right in here, I can see it was tested
09:16once, somewhat tested a second time.
09:19So this area so far, any reactions to it, that's going to get me paying attention to my lower time
09:26frame chart.
09:27If news hits and price is all the way up here, touching this area, that's going to get my attention.
09:33I'm going to look for a bounce down off resistance or a break out above resistance on my lower time
09:40frame charts.
09:42Okay, going back, my next most prominent area where price traded and changed directions.
09:50So we see there's a bit of support here, price came down, tested, held, and traded higher.
09:58Going farther back from right to left, my next area where I can very obviously see price broke down, held,
10:07and lifted.
10:08And you'll see this price tends to stair step higher.
10:12It'll come back challenge areas, hold or break through, in this case, hold and trade higher or trade lower as
10:20the market's breaking down.
10:22Now here's an area, I have a little node of support here, a couple of retests.
10:27I'm going to go ahead and move this down right into this little cluster, this whole area right here.
10:33If I saw price in that area, I'd start paying attention to it.
10:38Just below that, I have another node.
10:42And just below that, I have another node.
10:47So typically what I do on a four-hour chart, I like to go back at least three to four
10:51months.
10:53And then, you know, even if like five or six months back, there's a huge, you know, area of a
10:59big, and that's another thing to pay attention to.
11:01Very big, like V-bottom spikes where we have a big trade down and then a big trade back up.
11:09Those are prominent.
11:10Same thing where you have a big run-up, it's rejected and runs down.
11:15Inverted Vs and regular Vs, V-bottoms and inverted V-tops, those are key, key areas you definitely want to
11:24be tracking on a four-hour chart or a daily chart.
11:29So going forward, I see price comes up, and it tested an area.
11:36Now, notice how this area we had as resistance, it didn't hang out here for a while.
11:41It just pressed right through.
11:43That's a breakout.
11:45So on my lower time frame chart, as I'm seeing price pressing through with no opposition to it, that would
11:52have me looking for ways to get long on my lower time frame chart.
11:58So let's say several days later, this is where I'm at.
12:02And let's just say it's a Sunday night going into a Monday morning.
12:06Okay, I'm going to go on my four-hour chart, and I'm going to track my levels, get ready for
12:11the week ahead.
12:12I see that this prior resistance busted, and now I have a little bit of support right in this area.
12:19Going back from that, we had a pullback.
12:21It held, and the market ran up very hard from that area.
12:25I'm going to indicate that area as an area of support that I want to pay attention to.
12:30We had a lot of clustered activity.
12:32It maintained this area price.
12:34So I know there should be some support in this area price, that if it gets challenged again, I'm going
12:39to pay attention to it.
12:40And the more tests to an area and holds, the more prominent it is, and inverted Vs and regular V
12:51bottoms mean something.
12:53That means there's a sudden reaction where counter, you know, buyers were in here driving it higher.
13:00Buyers' exhaustion hit, and sellers immediately came in and rejected price, sold into it.
13:07Sellers are in control.
13:08They exhaust.
13:10Buyers immediately come in, buy the area, and reject price from that prior level.
13:16So the same exercise that I just conducted on a four-hour chart, I do that on a daily.
13:25The daily levels, let's just go, let's convert this to a daily chart.
13:30Let's go ahead, let's leave the lines we had from the four-hour chart.
13:37And let me move this chart back.
13:39Now let's take a look at, we're on a daily chart now, so let's look at some of the levels
13:45on a four-hour chart.
13:47Okay, right here, this level, as you can see, we hadn't run up yet.
13:53So we were sitting right about like that.
13:56So this was an area of support.
13:59That was resistance.
14:00And you can see these four-hour chart levels typically line up with prominent levels on the daily.
14:07So the more I look at this area on the daily, I like this area a little bit better.
14:13Because we had one, two tests, and then it took off.
14:18So a lot of times you'll see a lot of synchronization between the four-hour and daily chart.
14:25Sometimes on the daily, you'll see very prominent, you know, areas that were rejected.
14:31Sometimes a bit more clear on the daily than a four-hour chart.
14:36Now you could theoretically just do all your support and resistance tracking on just a four-hour chart.
14:42I like to have a look at the daily and the weekdays, just making sure I see prominent levels.
14:49And then what I do is very, very prominent levels.
14:52I'll go on the four-hour chart and just embolden the lines or color them a little bit different.
14:57So when I see it, when I'm in the trade day trading and I kind of go reference my four
15:03-hour chart,
15:04I'm like, oh, okay, that area up there that I've changed, let's say change it to color red,
15:09but that's like the highest price that the pound dollar has been in, you know, nine months.
15:15So I need to pay attention to that, or a year, two years, you know, from looking at the daily.
15:23Now going forward, as price played out, price came down and tested support.
15:29Pierced through a bit and lifted.
15:31So if I see that rejection on a breakdown and it's lifting back through,
15:36I would be on my lower time frame chart trying to find ways to get into the uptrend.
15:43Okay, price here pulled back on a daily chart, and I'm sure on a four-hour chart,
15:49I would indicate that as an area of support.
15:52Now this was a beauty, and I was actually a very active seller in my PAM fund in this area
16:00price.
16:01When we retested it, this was a gift.
16:05Price came out, didn't spend a lot of time above that prior level, and was rejected.
16:12Boy, you know, on the daily chart, it could be seen.
16:16On the four-hour chart, it could be seen.
16:18And on the lower time frame charts, there was plenty of opportunities to get into the downtrend.
16:25And the downtrend actually continued to build and accelerate and grow momentum.
16:31And literally came down, tested that support for a period of time,
16:36and then broke through and accelerated through prior levels.
16:41So making some adjustments.
16:43So whenever we keep trading forward in time, any lines that are broken through don't mean anything to me anymore.
16:50So let's say I'm right here.
16:52Price breaks through that level and accelerates down.
16:56Okay, this level doesn't mean anything to me.
16:59If anything, I'd move this line up and call this area of resistance.
17:04Price came down, tested support, challenged to lift a few times, failed, sold off.
17:10Came down, blew through support.
17:13Okay, so that line doesn't mean anything to me anymore.
17:16That support is gone.
17:18Price traded, came right down, tested perfectly, tested once, tested twice.
17:23No big bounces.
17:25And another thing, this is just like a door.
17:27The more time you see price coming and knocking on the door,
17:32eventually that door is going to open and let them through.
17:35So if I see the market testing, testing, testing, and then it breaks through,
17:39I jump on that break, that breakdown.
17:42Or if I see price pressing, pressing, pressing resistance, and then break through,
17:47I jump on that breakthrough pulse move on my lower time frame chart.
17:53So price broke through.
17:55Okay, now I'm going to measure the resistance in this area.
17:59Support broke.
18:00Now where was resistance as price is selling off?
18:03That way if price bounces, I know where are my potential areas for resistance.
18:09And there we sit.
18:10We've come down, we've tested recent support,
18:14and we're holding slightly above it on a daily chart.
18:19So tracking support and resistance is utilized to frame up the structure of the market.
18:29And it's also utilized to help you intraday see price reacting to these key support and resistance level,
18:38levels that you've tracked on a four-hour chart or a daily chart,
18:41to create opportunities to go look for directional trades on your lower time frame.
18:49Hey, price came up and tested.
18:51It's failing.
18:52It's rolling over.
18:53On my five-minute chart, my 15-minute chart, or 30-minute chart,
18:57I'm looking to catch pulse moves, pulse entries to the downside.
19:03Because I have a high expectation that the energy and price,
19:08there's a lot of energy to the downside as price is leaving a rejected test of a key level.
19:18And then the next area where I work a lot of my trades,
19:22I would say about 60% to 65% of my trades are out of news releases.
19:36So when a key economic report hits,
19:39usually four or five of the eight to ten currency pairs that we typically track are moving.
19:45And they're moving with energy.
19:47Well, what does that mean?
19:47Follow through.
19:48That means when I get a trade entry, I have a higher expectation of follow through.
19:54Because the market hasn't been going sideways for the last half hour.
19:58It's moving with some authority.
20:00That's when I want to get into trades.
20:02That's where I can get the bigger moves.
20:05So if I'm not targeting trades as price reacts to support and resistance levels,
20:12the predominance of time, I'm working price action out of news releases.
20:16And in the next video, when I talk about news trading,
20:20I'll tell you what's kind of cool about going in and trading news and how efficient it can be.
20:29So I just want to make sure tracking support and resistance levels are important
20:34because they're trade opportunities.
20:37And the next, you know, kind of key thing that I pay attention to is price action out of news
20:44releases.
20:45So now that I've covered how simple it is to track support and resistance,
20:50what charts to use,
20:52now let's go over and talk about trading out of news events.
20:57Here at least for the months.
20:57...