Support and Resistance Zones – Road to Successful Trading

This Support and Resistance Zones Strategy will enable you to take trades exactly at the area price will reverse. Trading support and resistance lines is critical for every trader to implement into their system. In this article you will learn how to calculate support and resistance, identifying support and resistance trading zones, stock support and resistance approach to trading, along with forex trading support and resistance.

Indicators Used in the Support and Resistance Zone Strategy is called PRICE ACTION (PA)

The more times Support is tested, the stronger it becomes.

Support and Resistance are lines on your chart.

You should place your stop loss at Support and Resistance.

If you follow the “theories” above, it would cost you money in the long run. Because these are the biggest lies about Support and Resistance trading strategy.

And it’s not your fault because these are stuff that’s being taught in trading books and courses.

But don’t worry.

After reading this trading guide, you’ll never make these mistakes again.

✍️✍️Specifically, here’s what you’ll learn:

👉🏾 The 5 things about Support and Resistance (losing traders are not aware of)
👉🏾 How to find favorable risk to reward trades
👉🏾 How to tell when Support or Resistance will break, so you don’t enter trades at the wrong time
👉🏾 A Support and Resistance trading strategy — that lets you profit from losing traders

Hey!!! Are you ready?

Then let’s get started.

📌📌Truth #1: The more times Support or Resistance (SR) is tested, the weaker it becomes

First, let’s define Support and Resistance:

Support – Area on your chart with potential buying pressure

Resistance – Area on your chart with potential selling pressure

Now:

You’ve probably read trading books that say… the more times Support or Resistance is tested, the stronger it becomes.

But the truth is…

The more times Support or Resistance is tested, the weaker it becomes.

Here’s why…

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.

Imagine this:

If the market keeps re-testing Support, these orders will eventually be filled. And when all the orders are filled, who’s left to buy?

Here’s what I mean…

📍📍📍Pro Tip:📍📍📍📍

Higher lows into Resistance usually result in a breakout (ascending triangle). Lower highs into Support usually results in a breakdown (descending triangle).

Let’s move on…

📌📌📌Truth #2: Support and Resistance are areas on your chart (and not lines)

This is a mistake I’m guilty of. Treating Support and Resistance (SR) as lines on my chart.

Why?

Because you’ll face these two problems:

👉🏾 Price “undershoot” and you miss the trade
👉🏾 Price “overshoot” and you assume SR is broken

Let me explain…