The takeaway is this:

👉🏾 Support tends to break in downtrend
👉🏾 Resistance tends to break in uptrend
👉🏾 Support and Resistance tend to break when there’s buildup


Here’s why…

❌❌ Resistance tends to break in uptrend

Here’s a fact:

For an uptrend to continue, it has to consistently break new highs. Thus, shorting at resistance is a low probability trade.

Instead, going long at Support is a better trade.

❌❌ Support tends to break in downtrend

Likewise:

For a downtrend to continue, it has to consistently break new lows. Thus, going long at support isn’t a good idea.

But, going short at Resistance is a great idea.

Next…

❌❌Support and Resistance tend to break when there’s buildup

Consider this:

Support is an area with potential buying pressure. So, the price should move up quickly, right?

Now… what if price didn’t move up and instead, consolidates at Support?

What does it mean?

A sign of weakness as the bulls couldn’t push the price higher.

Perhaps there’s no buying pressure or, there’s strong selling pressure. Either way, it doesn’t look good for the bulls and Support is likely to break.

An example:

And the opposite for Resistance:

If you want to learn more, go watch this training video below:

https://youtu.be/_BBjCdVfRvU

Let’s move on…

📍📍📍A Support and Resistance trading strategy that lets you profit from losing traders

Here’s a fact:

Support and Resistance attracts a lot of attention from traders. There will be some looking to trade the reversal, and others looking to trade the breakout.

Since trading is a zero sum game… for reversal traders to profit — breakout traders must lose. And for breakout traders to profit —reversal traders must lose.

Do you understand?

Good.

Now… let’s learn a Support and Resistance trading strategy to profit from breakout traders.

Here’s what you need to do:

👉🏾 Mark your areas of Support & Resistance (SR)
👉🏾 Wait for a directional move into SR
👉🏾 Wait for price rejection at SR
👉🏾 Enter on the next candle with stop loss beyond the swing high/low
👉🏾 Take profits at the swing high/low

Here’s what I mean…

1. Mark your areas of Support & Resistance

2. Wait for a directional move into SR

3. Wait for price rejection at SR

4. Enter on the next candle with stop loss beyond the swing high/low

5. Take profits at the swing high/low