And here’s something interesting… do you know the “real move” usually occurs after traders get stopped out of their trades?

And you can take advantage of this scenario by using a trading strategy I’ll share with you later.

But first…

📌📌📌 Truth #5: Trading at Support or Resistance gives you favorable risk to reward

A big mistake traders make is this:

Entering trades when the price is far away from SR. This requires a large stop loss and offers you a poor risk to reward.

An example:

But if you let price come to you, then you’ll have a tighter stop loss. And this improves your risk to reward.

Here’s what I mean:

😳😳😳😳😳 Remember…

Patience pays in trading. Stop chasing the markets and let price come to you.

📌📌📌Pro Tip:📌📌📌

Mark out your SR areas in advance. Then look for trading opportunities when the price has come to your levels. If the price is elsewhere, stay out.

Now…

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

https://youtu.be/cfEXir1-nEs

📌📌📌 How to tell when Support or Resistance will break — so you don’t get “trapped”

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.