In This Course we will be looking at something very simple but also very useful.
First lets look at the meaning of S/R and how we can use this to our advantage to make profit
As you can see that the top line is the resistance and the bottom lines are support we also have an indicator that plots these levels automatically it’s called “Crodl Levels”
The way you want to look at it is when price goes back up to a previous point of resistance and you see it is not breaking that number you want to enter into a sell position, because if the price does not break the resistance then we will not get price pumping and it most likely means that we are going Down back to the support Level.
This also means that if price dropped down to the support level and the support level holds the price up and it is not breaking the support that it will push the price back up to the resistance level.
This makes it easy to get a channel and to Short the top and Long the Bottom!
Now you are probably wondering what to do if a Support or Resistance level breaks
The answer is simple if price breaks the Resistance level the level is now below Current Price and this makes the level Support and no longer resistance.
If Price Breaks the support level and current price is now below that level. Then that level becomes Resistance.
If you don’t know when to enter a trade once either support or resistance is broken. You can wait for a retest as shown above. After Price Broke out and past the resistance level you wait for it to go back to that level which is now support and if that level holds it mean it is valid support and a perfect Long entry.
If it breaks the support line you will then wait for it to go back up and then the level should act as resistance and push the price down. This now means that is a valid rejection and a perfect short opportunity.
So in a bigger picture and we are in a trend for this example a downwards trend.
You want to focus more on support levels to be broken in order to take short positions as you know we are heading Downwards.
This means that Price will keep on breaking support levels until one of the support levels is strong enough and pushes price through resistance and we see a trend reversal!
Since we are in a downtrend and it means that price is pushing down you can look at signs like in the picture above.
the red resistance line means that it is pushing price down there to the support line and here you can see how the candles are acting towards the resistance.
None of the candles or wicks is breaking the line which means it as a strong reversal and a good short opportunity. by looking at the size of the the candle after attempting to break the resistance is a good way to see how strong the rejection is . The bigger the candle and smaller the wick the better is your chances of staying in the short trade longer and making more profits.
You can Try this strategy by using our trading link
and with our “Crodl Levels” Indicator
If you are still having trouble with this make sure to check out our other courses
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