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Support and Resistance

Trading the RangeBased on months of learning from George1Trader on Twitter, I just wanted to pop this tutorial up to demonstrate what I would define as a great example of BTC trading inside a range. These ranges can been found on any timeframe, but this one is on High Time Frame to demonstrate why I am currently bullish on BTC. The theory is simple: 1. A range is formed after a large move up or down 2. “Sweeps” of range high/low should be deemed as a liquidity hunt and usually means a move in the opposite direction 3. Locate if there are any consolidations from previous PA outside of the range....this is where liquidity will be resting 4. Dump or pump into consolidation block often demonstrates a major liquidity hunt designed to trap breakout traders 5. Assuming the dump/pump into consolidation block leads to price re-entering the range: trade it! Important to note, try to avoid the temptation to trade during the deviation....trade once price re-enters the range. Thats your confirmation! Stops would then sit below the deviation, with take profits at range high/low. I usually have a 50% TP set at range high/low in case price decides to continue its move....which is common. Hope you enjoy!
COINBASE:BTCUSDEducation
by TheCryptoClass
1
How to trade support/resistance breaksAs we can see on the picture we have 2 examples on how to do it properly and a bullish engulfing candle for a perfect entry. So lets explain a little more: 1. First example is how not to trade it. The reason is simple. We haven't retested our support. You want the buyers to hold our support. If they don't, you don't enter. Quite simple. 2. This is what could've happened if a trader didn't wait for a retest on the support after breaking the resistance (resistances become supports after we break them, roofs become floors). 3. Our trader waited for the retest, saw a bullish engulfing candle and took the entry. If you are going long you want your stop loss to be just under the support. If you are shorting you want your stop loss to be just above the resistance. Also, dont trade against the trend on higher time frames! As we all know, no trading strategy has a 100% winrate so expect some loses, but remember the more confluences you have on your trade the more likely it is to play out. When you are looking for entries, you never want your RR (risk to reward) to be under 2. I don't recomend using time frames below 5 minute (even though 5 minute is a little messy too). Remember to use proper risk managment while trading and keep your mental strong. Comment below if you have any fillers for this strategy and remember to backtest this on your pairs before making the trade. No strategy works on all pairs.
FOREXCOM:XAUUSDEducation
by fxAljtaric
1
HOW TO TRADE B&R CONSISTENTLYHello everyone, today i got my first tutorial on tradingview, I hope is gonna be helpfoul. You have to follow those rules and with practice you can be a consistent trader. RULES 1- Identify the trend and trade in the direction of the trend: can be so simple to identify a trend using structure, you don't need any EMA or any indicators, as the theory of Dow says we can identify a trend with those simple rules: - if the market is making higer high and higer low, it means that we are in an uptrend - if the market is making lower high and lower low, it means that we are in a downtrend - if the markets has equals low and equal high it's in a range IMPORTANT RULE: you don't trade in ranging markets. 2- once you identify the trend you have to identify KEY LEVELS, i divide them in 3 type: - higher and lower - intermediate levels - target levels IMPORTANT RULE: beetween your entry and the intermediate level there should be at least the same space between the entry and the stop loss, so you can put your stop loss to BE once is hitted 3- Trade just the retest, not the impulse Since the market can exaust in any moment, Trade only once the market alreay exaust, and you have a confermation (doji candle, long wicks candle, breaking of the high of the candle....) of a possible new impulse 4 - Wait for your pattern pick a set of patter, in this example is B&R, and wait for it to happen, Just wait till it happen, if it dosen't you don't take the trade 5- Last but not Least, Plan your Trade ahead. everytime you want to take a trade, plan ahead and wait for it to happen, this is the most important thing. take only the trade that respect those rules and plan those trades. For Following better those rules i sugges you to do a check list that you keep on the side of the monitor, and see if your trade respec everytime all of those rules, if it does feel free to take the trade. For better result i suggest you to Backtest as much as you can, once you understand the market behaviour you can even trade live. Trade safe
Education
by leobernazzoli
Drawing Support and Resistance Using Multiple Time FramesHi all, Here is a quick tutorial on how I draw support and resistance lines. A few things to keep in mind are use multiple time frames to get a more comprehensive understanding of trend and to determine which lines are more significant than others. Also, by using these lines you can set more accurate limit orders and save money by not having to pay extra fees for market orders. It is important to NOT enter long positions as we near areas of strong resistance. We should be taking profits at those levels and entering longs when approaching lines of support. Additionally, this allows you to set a tighter stop loss because if the line of support is rejected then it invalidates the idea that the asset is increasing in value. Of course, you need to use indicators and do a more comprehensive analysis but this should be a helpful tool to help you manage risk. I plan to make more of these videos laying out trend lines, dynamic lines of support and resistance, fibonacci retracements and spiderlines etc. If there is anything you want me to provide a tutorial on please leave a comment and I will get around to it as time permits. Best, Brad
BINANCE:LINKUSDEducation
by Brad_Perkins
2
how to apply fibonacci fans and auto FibFans studyFibonacci Speed and Resistance Fan is an analytical drawing tool used to indicate the support and resistance levels of an existing trend and the price level at which possible changes in the trend may occur. A Fibonacci Speed Resistance Fan consists of a trend line drawn between two extreme points - a trough and opposing peak or a peak and opposing trough - on which a set of sequential speed resistance lines are drawn above (which represents time) and below (which represents price). These lines are drawn based on time/price percentages of the distance between the beginning and the end of the trend line. Speed resistance lines not only help to measure trend corrections but also measure the speed of a trend (the rate at which a trendline ascends or descends) Traders can use the lines of the Fibonacci Speed and Resistance Fan to predict key points of resistance or support, at which they might expect price trends to reverse. Once a trader identifies patterns within a chart, they can use those patterns to predict future price movements and future levels of support and resistance. Traders use the predictions to time their trades Nobody appears to know whether Fibonacci tools work because markets exhibit some form of natural pattern or because many investors use Fibonacci ratios to predict price movements, making them a self-fulfilling prophecy. In any event, key support and resistance levels tend to occur frequently at the 61.8-percent level (0.618) on both uptrends and downtrends Fibonacci Speed and Resistance Fans vs. Gann Fans Gann fans are another form of technical analysis based on the idea that the market is geometric and cyclical in nature. A Gann fan consists of a series of trend lines called Gann angles. Instead of relying on Fibonacci's golden ratio of 1.618, Gann believed the 45-degree angle (geometric angles of time versus price) to be most important. The Gann fan subsequently draws additional angles at 82.5, 75, 71.25, 63.75, 26.25, 18.75, 15, and 7.5 degrees. These angles are superimposed over a price chart to show potential support and resistance levels Step By Step Applying Fibonacci Speed and Resistance Fan Some interpretation examples: Example of how to identify if the move is Reversal or Retracement All the above are now available with the Auto Fibonacci Speed and Resistance Fans Study ʙʏ DGT ☼☾, LINK to Auto Fibonacci Speed and Resistance Fans Study
Education
by dgtrd
40
how to apply pitchfork and auto pitchfork studyPitchfork , is a technical indicator for a quick and easy way for traders to identify possible levels of support and resistance of an asset's price. It is presents and based on the idea that the market is geometric and cyclical in nature   * Developed by Alan Andrews, so sometimes called Andrews’ Pitchfork   * It is created by placing three points at the end of previous trends   * Schiff and Modified Pitchfork is a technical analysis tool derived from Andrews' Pitchfork In general, traders will purchase the asset when the price falls near the support of either the center trendline or the lowest trendline. Conversely, they'll sell the asset when it approaches the resistance of either the center line or the highest trendline. █  Usage Tips :   * Andrews' Pitchfork (Original) best fit in a Strong Trending Market   * Schiff and Modified Pitchfork better with Correcting or Sideways Market. Modified Pitchfork is almost identical to a Parallel Chanel Step By Step Applying Pitchfork Auto Pitchfork Study ʙʏ DGT ☼☾ Besides Auto Pitchfork Pivot, Support and Resistance plotting, study also includes Auto Fibonacci Retracement Levels and Zig Zag indicator Link to the Auto Pitchfork ʙʏ DGT ☼☾ :
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Education
by dgtrd
198
Support & Resistance Continuation Setup ( Low Risk Setup )Support & Resistance Continuation Setup is a low-risk setup where you can ride along with the trend. As a family reminder, the trend is your friend. All it takes to do this setup is a trendline, zones and the formation of the candle or Price Action. What we need to look for is a continuation formation of the candlesticks which is, Rally-Base-Rally (RBR) for uptrend continuation setup and Drop-Base-Drop for downtrend continuation setup. The SOP for this setup is : - Draw 2 points or 2 touches of the trendline (You can draw it from Wick-To-Wick or Body-To-Body). - Look for Strong Resistance or Strong Support. - Look for continuation formation of the candlesticks. If there is no one of the listed SOP above on the chart, the possibility of the price reacting the way we predict is dropped below 50% immediately. To counter this problem, if your plan is to buy, you can sell it instead once the price making a breakout of the zone and making a pullback into the zone and vice versa. From my personal view, this is the easiest setup for beginners to learn. All credit goes to by the name of Bystra. P.S, sorry for my bad English. Have fun and good luck! :)
Education
by PipsXAnalysis
How and where to place Orders, Stop Losses and Take ProfitsHey TradingViewers! How's it all going! Following on from our Trading Support and Resistant Series, here's How and where to place Orders, Stop Losses and Take Profits. If you've been following the previous posts (When Support becomes Resistance, and Resistance becomes Support and How to identify trades using Support and Resistance) you'll notice we're using the same chart to place our orders, stop losses and take profits, and also, as we're responsible traders, the reasons why we're placing them where we are. So let's do this! We're going to use Trade Setup "a" as our example here. We've identified why we're going to place this SHORT here, those reasons were: It was quite significantly rejected from Line 0 The counter move from Line 2 wasn't able to surpass Line 0 and didn't create a higher high Constant rejection from the Line 1 downtrend line So we place a SHORT order, and at this point we'll also place a Stop Loss. For any beginners out there, a Stop Loss order will close your trade if the price moves against you too much. You specify where to place the Stop Loss and they're important because without using a Stop Loss, you can risk losing an unlimited potential. So now we know what a Stop Loss is, where shall i put it? If you put it too close to your initial entry, you run the risk of stopping your position out, too far and you run the risk of losing money unnecessarily. Which brings us back to our Support and Resistance lines from the first Tutorial and the reasons why we entered the trade in the first place. The price has failed to breach Line 0, which is your Top Level of Resistance, and is currently under the Line 1 downtrend. If i wanted to be safe and give my trade the greatest chance of success, i'm going to place it above where the market can't currently get past, and for us in this instance, that's Line 0. I also place it above Line 0 and not on it. Now if the market is to catch our Stop Loss, it would first have to break Line 1, and turn Line 0 into Support which is unlikely considering the reasons we used to entry the trade initially! (I told you the reasons are important!) Now we have our Stop Loss set, let's take a look at Take Profits. As a general rule of thumb, when SHORTING your Take Profits will occur at areas of SUPPORT, and when LONGING, your Take Profits will occur at areas of RESISTANCE. Since we're shorting, we're going to look for an area of support. And what did we discover was an area of support? When price has moved significantly counter to the current trend , which for us in this instance, is our first Take profit zone, or Line 2. If we look further down the chart we see all of our Take Profits are at the corresponding support levels, TP1 is close to Line 2, TP2 is close to Line 3 and TP3 is close to Line 4. And why are they placed here? Because price has moved significantly counter to the current trend . Let's look a little closer here, TP1, TP2 and TP3 are all above the Support lines, why is that? That's because putting your Take Profits at the very base of support reduces your likelihood of your TP being fulfilled. In the event of a swift reversal, the price may not touch support before riding much higher, erasing those well deserved gains. So now you're probably saying "I can place a trade, a stop loss and take profits. I have good reasons why i'm doing all those things, but when do i close?". The reasons for me to close a SHORT are the same as when i see a reason to open a LONG on the same currency PAIR. Likewise, i'd close a LONG when i see a reason to open a SHORT. Lucky for us, we have two opportunities to close this trade in profit, as well as create further profit by creating a LONG entry. Let's take a look at Trade Setup "d". If you're not sure what this is referring to, it's the reasons for entering the trade on my post "How to identify trades using Support and Resistance". At "d" we saw this as a potential trend reversal for these reasons: Line 4 Is an upward trending line which has been tested and has moved significantly counter to the current trend each time it has been visited. Line 1 has now been breached and is acting as Support, signalling that the price is not going to continue downwards. So if we think about it, we're in a profitable SHORT, but we have strong reasons to believe a reversal is in progress. If i'm being cautious, and to maximise my profits, i'll close this trade here at CLOSE 1. Sure, but isn't it possible the trade get's rejected by Line 3 and heads further down? And it is, and that is a Traders Trade Off (TM). You are trading the known for the unknown, all the while being in profit. If you were looking for more certainty then of course, you'd wait to see how market behaved once it reached Line 3. In this instance, trade setup "e" is a very strong LONG position (reasons in the previous post), and as such, i would close my SHORT at CLOSE 2. Thank you all for your time, i hope that it's been helpful, For_The_Many
Education
by For_The_Many
12
How to identify trades using Support and ResistanceHey TradingViewers! How's it all going! In my previous post called When Support becomes Resistance, and Resistance becomes Support we identified where to place support, resistance and trend lines. Following on from this, we're going to identify where the best places are to execute a trade. This post will identify trade setups, as well as the reason we're going to execute these trades where we are. This is the most important thing to remember, you should always have a reason and supporting arguments as to why you're opening a trade. Opening a trade without having supporting arguments is like driving a car for the first time, you can probably do it, and you *might* be fine, but it's dangerous. Additionally, if you start your analysis with the reasons why you're executing a trade, you begin a cycle of thinking before you trade. It stops any rash decisions, as well as giving you the opportunity to review trades that may not have gone your way. For example, perhaps your stop loss was too tight, or you bought at support, which was very close to resistance. If you're trading without any specific reason, you can't reflect and say i did this because of X. So let's get to the chart. I'm using the exact same chart as my Support becomes Resistance, and Resistance becomes Support tutorial. As you can see I have placed either a tick, cross or "-" sign at specific entry points. On the chart, i have found 5 possible trade setups, these are identified using the tick and "-". The crosses indicate areas i would not place a trade. Let's go through these one by one, starting at the letter a. There are two "-" signs identified on this chart, at "a" and at "d". These are valid trades, although they carry a higher level of risk than those with a tick, hence why i've made them separate entries. Trade Setup "a" I would consider a SHORT at "a" because of the following reasons: It was quite significantly rejected from Line 0 The counter move from Line 2 wasn't able to surpass Line 0 and didn't create a higher high Constant rejection from the Line 1 downtrend line I would not consider a SHORT at "a" because of this one very reason: The Line 2 support could have held and pushed the price above Line 0 and reverse the trend. Trade Setup "b" I like b for many reasons, and this is why there is a tick. Those reasons are: At "b" the price is currently under: Line 0 - Top Level Resistance Line 1 - Downward Trend line Resistance Line 2 - Secondary Resistance As well as being under each of the resistance areas, you can see it tried to push itself past line 2 (which was support), and failed. As we recognised from "When Support becomes Resistance, and Resistance becomes Support", the level which was once support is now resistance. For these reasons, i would place a SHORT at "b". Trade Setup "c" Similarily to Trade Setup "b", "c" has all the exact reasons i would place a SHORT . These are: Line 0 - Top Level Resistance Line 1 - Downward Trend line Resistance Line 2 - Secondary Resistance Although now, it's under the Line 3 Support turned Resistance. Another reason why a SHORT is viable here. For these reasons, i would place a SHORT at "c". Trade Setup "d" So this is the first of our LONG trade opportunities. As with "a", this is labelled with a "-". This is again because it carries a higher level of risk. I would consider a LONG at "d" because of the following reasons: Line 4 Is an upward trending line which has been tested and has moved significantly counter to the current trend each time it has been visited. Line 1 has now been breached and is acting as Support, signalling that the price is not going to continue downwards. I would not consider a LONG at "d" because of this one very reason: It is under all of the remaining resistances in Line 0, Line 2 and Line 3. Trade Setup "e" As with Trade Setup "b", there is a lot of things to like about a LONG position at Trade Setup "e". These are: Line 4 is acting as support, being tested multiple times and each time, has moved significantly counter to the current trend Line 1 is no longer acting as resistance, and therefore is support Price has pushed past line 3 and is resistance turned support. For these reasons, i would place a LONG at "e". I hope that has helped clarify where i place trades where i do, and most importantly the reasons i do. So now we've identified areas we like, and the reasons behind them, let's look at where to place the order, stop loss and take profits in the link below named "How and where to place Orders, Stop Losses and Take Profits"
Education
by For_The_Many
When Support becomes Resistance, and Resistance becomes SupportHey TradingViewers! How's it all going! I was planning my upcoming trades for this week and came across a great example of When Support becomes Resistance, and Resistance becomes Support! I'll explain why i place each of the levels, and why i place them where i do, why that's important and perhaps most importantly, how to trade it! So let's get to it. I've labelled each of the support, resistance and trend lines with a number starting 0, ending at 5. Let's begin with 0. I place line 0, simply put, where the price has not been able to push any higher. I place it above the price action, and extend right. This will be our top level resistance. Line 1 is our downward trend line. I start the line above Line 0 and draw it so that it crosses the tops of the rejected candles. I extend it down and to the right. The reason i place it across the tops of the rejected candles is because each time the price has hit this line, it's been rejected, which is a good sign you have a true resistance trend line. Line 2 is the first or our horizontal supports. i determine there is support here as price has moved significantly counter to the current trend . I begin the line near to the open or low of the candle, and extend right. Line 3 is the second of our horizontal supports, and you guessed it, it's been added because price has moved significantly counter to the current trend , and as line 2, I begin the line near to the open or low of the candle, and extend right. Line 4 is an interesting one, and something to take especial notice of. Line 4 is the first trend line which is uptrending. The reason this is important is that it could be a strong signal that a trend reversal is coming. I place the start of the line at the point, (that's right, you guessed again), where price has moved significantly counter to the current trend , and i extend right, connecting the higher lows. Line 5 is an extension of Line 3, and a great visual representation of resistance turning into support. But what are the circles? WHY ARE THERE CIRCLES? The circles are to identify (in multiple instances) where support has turned into resistance, as in Line 2 and Line 3, and resistance has turned into support, as in Line 5 and also the cross of lines 1 and 4. So i'm sure some of you are now asking: "Okay so i know how to place support, resistance and trend lines but how does that help me? Where's the profit in all of this?" Well I'm glad you asked and it's in a link in the Related Ideas below, called How to identify trades using Support and Resistance. Thank you all for your time, i hope that it's been helpful, For_The_Many
Education
by For_The_Many
7