INTERMEDIATE FOREX COURSE
January 28, 2024
Support and Resistance are widely used concepts in the financial world. Therefore, it is essential to understand them. At these support and resistance levels lies an opportunity to profit from the bounce of prices when they reach these key levels. There are a few ways to identify support and resistance levels, and in this video, I explain two easy methods to detect valid SNR levels. Watch it now.
As we have already learned about Support and Resistance Levels, we understand that prices will bounce off these levels. However, if prices only bounce between these two levels, from resistance to support and vice versa, the market would probably just stay the same over time. There are times when even the strongest key levels will break. In this video, you will learn how to identify a valid breakout of these SNR levels. Watch it now.
While breakout trading is a effective strategy, there are risks involved, such as the price reversing against the breakout direction, resulting in a Fake Breakout. In the concept of smart money, this is referred to as ‘trapped retail,’ where buyers who entered the breakout get caught in a sudden price drop, and sellers get caught in a sudden rise. The idea of a Fake Breakout, or FakeOut, might seem daunting, but it’s an opportunity you can’t afford to miss if you aim to capitalize on substantial gains. Equip yourself with the necessary skills to navigate and trade Fake Breakouts effectively.
When trading SNR, a breakout of a level will change the nature and characteristics of the level, transforming it from support, which halts the fall of prices, into a level that encourages the fall of prices, and vice versa. This phenomenon is called Role Reversal. This setup is one of the most fundamental moves in the market, and in my opinion, it’s one of the best. Why not learn about it and witness its magical impact yourself? Watch the video below to learn more.
The trader’s ability to swiftly identify trends significantly impacts their profitability. In the dynamic world of trading, the journey often initiates with an inevitable loss—whether absorbed by the spread cost or a minor drawdown within the trading zone—before transitioning towards favorable outcomes. While many traders prioritize optimal entry points, the real art lies in mastering the skill of making the correct exit.
This pivotal decision, determining whether one exits with a profit or a loss, underscores the essence of successful trading. The art of exit, in essence, involves adeptly discerning the direction where price intends to move. To deepen your understanding of this critical aspect, immerse yourself in the practice of trend analysis. Unlock the intricacies of trend analysis through comprehensive insights shared in the enlightening video below.
In our previous lesson, we underscored the significance of aligning trades with the prevailing trend for sustained profitability. However, an insightful trader must also possess the skill to identify when the current trend is nearing its end. This foresight is crucial to avoid falling into the wrong direction when the trend undergoes a reversal. Watch the video to discover clear signs that tell you when a trend is ending.
Now that we know about Structure Breaker as a signal for the end of a trend, it’s important to understand that a Structure Breaker serves as a signal, not a confirmation. The trend may persist despite the development of a Structure Breaker. However, if a Structure Breaker is denied, adjustments are necessary for the current swing high and swing low of the trend. Explore this topic further in the following video.
Now that we understand the market direction through market structure, we’re ready to delve into the concept of Trading Range. A Trading Range is an area where potential entries on retracement can occur. While marking Supply and Demand Zones or Support and Resistance Levels, there’s often a tendency to choose levels and zones randomly. However, with the Trading Range concept, we focus solely on levels or zones within the dedicated range. To simplify this concept for newcomers, we’ll explore the range within the trading range and also discover how to set up custom Fibonacci Levels to mark the trading range. Explore these concepts further in the following video.
Previously, we learned about the basic range within the trading range. However, this range can be somewhat ambiguous and may appear larger on higher timeframes. In the realm of trading edge, we aim to leverage the golden ratio in Fibonacci retracement—specifically 38.2% and 61.8%—to enhance our edge within the range. Explore this concept further in the video below.
Within the trading range, there will be level that will be respected and will be broken that are called limits within the range. A trader should focus only on the current limit that the price is approaching instead of randomly guessing which one the price will visit and turn. Learn more in the video below.
Role Reversal is a phenomenon in which an SNR Level is broken, changing its role from Support to Resistance and Resistance to Support. When an SNR Level is broken, it can manifest in various ways, leading to setups that significantly influence our approach to trading the broken level.
The first setup, known as the Normal Setup, is a Role Reversal scenario where the price retraces to the Mid Range. This is the most common and fundamental Role Reversal setup observed in the market. For a more in-depth understanding, you can watch the video below:
The second setup, termed the Creeping Setup, is another Role Reversal configuration where the price retraces beyond the Mid Range. In a Sell setup, the price gradually moves up to the Upper Quartile Range, while in a Buy setup, the price creeps down to the Lower Quartile Range. Explore this concept further in the video below:
The last setup, referred to as the Blow-Off setup, involves the Role Reversal setup where the price retraces only slightly without reaching the Mid Range. Traders accustomed to the normal setup may overlook this trade due to its characteristic of aligning with the price with minimal retracement. Delve into the details in the video below:
As a Supply and Demand trader, the concept of the Base in a Supply and Demand Trading Methodology is very fundamental. When you trade Supply and Demand, you would likely be trading using a Base. There are two types of Base Entry in a Supply and Demand Trading System: Base Break Entry and Base Break Return Entry.
The Base Break Entry (BBE) is a method of Supply and Demand Trading entry where the entry is executed instantly when the price has validated a base. To learn more about this method of entry, watch the video below:
The Base Break Return Entry (BBRE) is a Supply and Demand Entry Method where the entry is executed inside the Supply and Demand Zone. This entry is good for traders who are looking for a low-risk zone setup. To learn more about this, you can watch the video below:
The concept of trading BBE and BBRE concurrently serves as one approach to navigating the market through price action, as elaborated in detail in the video below.
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