When we trade reversals and transition signals, we usually wait until they happen at key price areas. We use the principles of support and resistance to identify those high impact areas. In video, you’ll get a first introduction to support and resistance.
In videos, I will show you how to use those principles to time trades and in the second pattern (The Trap), you will learn how to profit from “the crowded trade” phenomenon.
Again, we are just getting started and this is only the foundation. Later on, we will put everything together but it’s important that you get the basics down.
Let’s recap:
▪ Support and resistance levels show key price turning points
▪ Get into the mindset of drawing zones, instead of single levels
▪ Once a support/resistance area becomes too obvious, price tends to fade them (the crowded trade)
▪ A flip zone is a an area where price first used a level as support and then used it as resistance -we will explore the flip zone later in more detail when it comes to entering trades
▪ Support and resistance levels show key price turning points
▪ Get into the mindset of drawing zones, instead of single levels
▪ Once a support/resistance area becomes too obvious, price tends to fade them (the crowded trade)
▪ A flip zone is a an area where price first used a level as support and then used it as resistance -we will explore the flip zone later in more detail when it comes to entering trades
No comments:
Post a Comment