Learn to identify support and resistance zones on any market using 4-hour and 1-hour charts, then enter trades when price breaks recent swing highs or lows with a 2:1 risk-to-reward ratio. The instructor covers zone management, Heikin-Ashi candles to filter false signals, and change-of-direction pivots as high-probability setups.
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Support and resistance is one of the most important concepts in trading, and once you understand it, the markets start to make way more sense. Most people overcomplicate it. In this video, I'm going to break it down for you step by step in the simplest way possible so that by the end you'll know exactly how to not just identify support or resistance zones, but also how to use them to find high probability trades and how I personally use them in my own trading strategy every single day. Now let me be 100% real with you. I struggled with finding support or resistance zones for a very long time. Not just finding zones that were actually legit, but actually drawing them the correct way too, or knowing which ones mattered or which ones didn't matter. And worst of all, actually figuring out when to enter once I did finally figure out how to draw my support resistance zones right. For years I'd get faked out, I'd chase bad setups, and my trading just honestly was not working. And that's exactly why I wanted to make this entire full course completely for free, because once I I finally mastered support or resistance, everything changed. In this video, like I said, we're gonna go over all of that so there's literally no confusion at all. Let's get into this. All right, so here we are on the charts. Keep in mind, I treat support or resistance the exact same no matter what I'm trading. If I'm trading crypto, Forex, futures, stocks, options, no matter what, I treat support or resistance the exact same. But first of all, what even is support and resistance? So think of it this way: support is a floor, right? Resistance is a roof. How I always— like a little hack for me to always remember which one is which is when I think of support zones, I think of something being supported up. When I think of a resistance zone, I think someone trying to break through a resistance to the upside. That's how I kind of, um, a hack that I use to memorize support and resistance. But basically all support or resistance means is— so just imagine this yellow line right here is the price, right? And we'll say this is the price of Bitcoin. Imagine this blue support zone right down here resembles or means that when Bitcoin is down here, Bitcoin's at $100, and up here that means Bitcoin is at $150. This is how the market reacts when Bitcoin gets down to $100. To the market, to the world, that's cheap. So every time Bitcoin is at $100, people buy it because they, they think Bitcoin is cheap at $100. Everybody buys it. When everybody buys it, that causes price to go up. Right now, this is $150 Bitcoin. When people see Bitcoin is at $150, they think, oh, that's pretty expensive, I should sell my Bitcoin here because it's probably not gonna go higher than that because that's an expensive price for Bitcoin. So every time Bitcoin gets to $150, they sell it. When everybody sells, that makes the price go down, and it just keeps going between the support and these resistance zones as time goes on. Every time Bitcoin is at $100, it's considered cheap, so people buy it. Every time Bitcoin's at $150, it becomes expensive, so people sell it, and that just causes price to keep going in between the support and this resistance zone. Now realistically, that's exactly what support or resistance zone is. Now price isn't always just going to stop directly at a resistance zone or right at a support zone, but these are general areas where price has previously rejected at. That's all we need when it comes to trading. We're just looking at patterns, we're looking at what price has previously done. So if we know previously at $100 Bitcoin always buys up, that's creating a support zone right down here. Same thing vice versa. Previously when Bitcoin's at $150, most people think that's expensive, so price sells down. And that's how we get these support and these resistance zones. And obviously having this information, knowing that we have support zone down here and resistance zone up here, we can be on the same side as the market going in the wave of the market. We always want to follow the trend. We always want to follow what everybody else is doing when it comes to trading. So we can know and wait that, okay, if we're patient enough to wait for Bitcoin to come down here, we can look for an entry to buy up to make money from price going up. Same thing vice versa, because with trading we can obviously make money when price sells to the downside. So if price taps into a resistance zone and we know previously it always rejects at this specific resistance zone, we can wait and look for entry criteria, which we're going to get into later what exactly that looks like. We can wait to see if we see entry criteria for us to enter into sales. And that's what support and resistance is in simple terms. Now you might be asking, okay, now what happens when price goes into this resistance zone and it doesn't sell off of it, it just keeps going up? That's what we call a breakout. Now breakout is not bad at all. A breakout simply means that it broke above a previous resistance zone or broke below a previous support zone. That's simply a breakout. But the cool thing about breakouts is that most of the time price comes back down to retest those same resistance zones or those same support zones, and it actually flips it. What do I mean by that? Let's say this is our resistance zone, right? Price finally breaks above it. Most of the time, this previous resistance zone that price failed to break above, when it breaks above it finally, it'll come back down to retest it, and it'll actually treat that previous resist— at that previous resistance zone as a support zone and bounce off of it. Same thing vice versa with support zones. Let's say we've had this support zone for a long time, finally breaks below that support zone, it'll come back up to retest it and it'll treat that previous— what was previously treated as a support zone, it would treat that support zone as a resistance zone and sell off of it. And we can make money on that as well. I'll go over my strategy and how I trade not just regular support or resistance zones,, but also break and retest zones and why they're even more powerful. But that's essentially all support or resistance is. It's looking for key areas where price has previously rejected off of, whether it's a support or resistance area. And then we're just waiting for price to get back into those areas. We're waiting for our entry criteria and we're entering based off of those support or resistance zones, looking for bounces off of them. Now we're about to go on the charts here and I'm going to show you guys some actual examples, looking at actual candlesticks versus just drawings.. But when I'm looking for support zones or resistance zones, I'm looking for two specific things to show me that this is actually a valid support zone or this is actually a valid resistance zone. I'm looking for multiple rejections at the same area. It could be multiple small rejections like this at the same area. This is telling me that this area right here is a valid support zone. Same thing, vice versa with resistance. I'm looking for multiple rejections at the same area. They don't have to be huge rejections off of it.. But as long as I see multiple rejections, at least 2 rejections at a zone, that's perfectly fine to me. I'll mark that off on my charts and then I'll just patiently wait for price to come back in that area and look for entry criteria to enter into that trade, uh, for a bounce off of that support or resistance zone. So I told you guys, I'm looking for either 2 things. I'm looking for either multiple rejections at a zone, or I'm looking for one strong rejection away from a specific area. So if price makes a huge move to the upside and gets in this area right here, and then it sells off very strongly— to me, this is a resistance zone. This is a strong resistance zone. Same thing vice versa. If price is chilling to the downside like this, then it gets right here in this area and makes a huge move to the upside— this is a valid support zone right down here. Now, I— that's the two things I look for: multiple rejections at an area or one huge rejection away from a specific area. So I want you guys to keep that in mind when you are looking for and practicing to draw your support and your resistance zones, because that's what you want to look for. You don't want to look for one small rejection at an area and classify that as a support or resistance zone. That's not a high probability zone. We only want to use and see high probability zones. And that's how I trade. And that's what's allowed me to obviously make a good amount of money just trading this one strategy. But with that being said, let's hop into the actual charts and look at some candlesticks so you guys can see what this looks like in real life. All right, so here we are on the charts, and I have a couple tips and tricks for you guys to make this entire process a lot easier. The first thing I personally do is I start in drawing my zones on the 4-hour time frame and the 1-hour time frame. And there's a reason I do that— it's because the lower the time frame, the more price lies. What I mean by that is if you draw a support or resistance zone on, let's say, the 1-minute timeframe, those support or resistance zones are not strong at all. Those to me, I cannot trust those. I do not feel confident taking trades off of 1-minute support or resistance zones, or even 5-minute, or even 15-minute. The only timeframes I'm looking for support or resistance zones on is the 1-hour timeframe or the 4-hour timeframe. I'm always starting on the 1-hour or the 4-hour. I trust my 4-hour zones a lot more. And then also sometimes depends on trading stocks. Or crypto, I'll go to the daily time frame. But if I'm trading futures, right now we're on YM charts, which is a futures ticker. But as I mentioned, everything I go over in this video, I use the same across all industries— forex, futures, stocks, options, it doesn't matter. But in this analogy, we are, for example, we're just using YM, which is a futures chart. But as I mentioned, most of the time I'm drawing my zones on the 4-hour or the 1-hour time frame. Sometimes I'll go to the daily time frame. Now keep in mind, the higher the time frame, the more valuable that support or my resistance zone actually is. And I'll show you guys the difference between drawing the zones on the 4-hour versus the hourly. A lot of the times there'll be an overlap between some support or resistance zones that you draw on the 4-hour time frame versus the 1-hour time frame, but the zones that only show on the 4-hour time frame are extremely strong. Those are my zones that I usually make majority of my money on, and I have a higher probability of winning the trade on. So I told you guys there's two things that I look for, right? I'm looking for multiple rejections at a specific area or one strong rejection. In this example, if we look here on the 4-hour time frame, we see multiple times that price has gotten in this general area. I told you guys it needs to be at least two times. If I've seen at least two times where price has gotten in a specific area I'm going to draw my zone. And how I draw my zones— because I struggle with this for a long time— how I draw my zones is when I'm drawing my zone, it's always the first time that I see the zone being created or the area being respected. I take that candlestick, the lowest candlestick, and I'll draw a box from the body of the lowest candlestick to the wick of the lowest candlestick. So in this instance, from the body of this candlestick right here to the wick of that lowest candlestick right here. The reason why I use boxes— and you've probably seen some people draw like lines for support or resistance— you have to understand, when it comes to price action, nothing's exact, right? There's going to be very rare times where you see price go to a specific area, reject off of it, and price come back to that same exact area and reject off of it. That's— that just doesn't happen. Price rejects in this general area. If you guys remember my Bitcoin analogy, Price— people don't just buy Bitcoin right at $100. Some people will buy Bitcoin when it's at $99 or $102 or $105 or $93. So you want that general area, and that's why I use boxes versus using lines, because there can be a lot of times where you have a good support zone, let's say something like this, and then price goes up. You're waiting for price to come back down to that support zone, and it stops right here. But you don't enter because it didn't touch your line. That's why I use boxes so that we have the general area of the support zone, the general area of where price might reject that. Same thing vice versa with resistance zones. But as I mentioned to you guys, this is how I draw my zones: from the bottom of the body of the wick— of the— sorry, of the body of the lowest candlestick, which in this analogy would be this candlestick right here, and I drag the box down to the bottom of the wick. Then I just drag that across and I'm waiting for price to tap back into that zone once again. Now this is actually a good example right here of if we had just drawn a line right here on the bottom of this wick, right, we would have seen that price didn't even come and touch that line either of these two times. But both these two times we could have made money off the bounce of it going up, made money off the bounce of this going up, which is a trade that happened just today itself. Now this specific trade was actually taken inside of my inner circle. If you don't know what my inner circle is, you don't only get mentored and get all of my educational resources and material and courses, but you also get to trade live with me every single day. I'll leave a link for it inside the description down below, but it's only for serious people. And you're probably going to notice if you've seen any of my other YouTube videos, if you go to the comment section, there's going to be a bunch of people complaining about that there's no spots left, and that's because I don't take on everybody. Like I mentioned 30 times at this point, my Inner Circle is only for people who are actually serious, people who want to take this serious. You can be a complete beginner that doesn't know anything, but you have to have the drive and the mentality to want to take this serious to actually see results with it. Like I said, hit the link for it inside description down below. But as I was mentioning, if we had just drawn this line, we would've missed out on this entire trade. We could have caught a trade right here to the upside. And caught a trade right here to the upside after it got in this general area. So that's why, as I mentioned, I draw these zones and then I wait for price to tap back into my zones. This is a perfect example of when I'm looking for multiple rejections. So this was where I saw my first rejection. This is where I saw my second rejection. So this would've been an entry, which is the entry that I sent out into my inner circle this morning. These two lows right here solidified this is an actual support zone. So now it's piqued my interest. So then I just simply waited for price to tap back into this support zone area, wait for my entry criteria, which like I said, we'll go over a little bit later on inside this video. Wait for my entry criteria and then got me into this trade for buys to the upside. Now that's looking for multiple rejections. What about one strong rejection? So we have this instance right here where price got in this area and we see as soon as price got in this area, we had huge push to the upside. This is one huge push to the upside. And as you see, we have this— we could have marked this off. It's the same exact way that I'd mark it off. The lowest body of the candlestick right here, this, this candlestick right here is the lowest one. I'll take the body all the way to the wick, so drag it down to the wick. And all I'm doing is dragging it along and waiting for price to tap back into it. So we see price bounced off of here, had a huge rejection to the upside after getting in this area. And then price sold down right here, tapped right back into our area, and then bought up very strongly. This is another example of why I use zones and boxes versus using lines. 'Cause if I was waiting for price to tap back down here, I would've missed this whole huge move to the upside, missing out on a huge amount of money. So this is an example of a huge rejection off of an area. Now, if we look here, This is a perfect example of what we just talked about, which is a break and retest. So I draw my resistance zones the same exact way. This, you see price rejected off of here multiple times, off this general area multiple times. I would've drawn it out same way right here to the highest wick. Technically, you could draw your, um, wick all the way up to here since price wick above here. You could draw it just like that. Then you're just dragging it across, right? So let's rewind a little bit so you can see what happened. So price couldn't break above this resistance zone. It sold off it the first time, sold off it a second time, sold off of it a third time right here. So it couldn't break above this resistance zone. Then we see on this green candlestick right here, price finally broke above this resistance zone. But as I mentioned to you guys, that's not the end of the world. When breakouts happen, most of the time price will come back down to that area and treat that previous resistance zone as a support zone. So now we can fast forward. And as we can see, price tapped back into this resistance area and we could have actually made money on price bouncing up right here if we had gotten our entry criteria, 'cause we tapped back into here, then we had some green candlesticks going to the upside. So we could have actually made money. Now I want you guys to realize something. Remember the same zone we drew before? Um, that we— I was just telling you had a huge rejection off of it. As you see, it overlaps this zone. I told you guys most support or resistance zones are going to be treated as the opposite of what it was after it got broken above. And I told you guys it's never going to actually stop exactly at it. So let's say we didn't even have this zone drawn out. Let's say we only had this zone. We know that price isn't going to always stop directly at our zones, and that's fine. I'm okay, and a zone is still valid if it breaks below my support or resistance zone, as long as it doesn't close outside my support or my resistance zone. If you see in this analogy, this candlestick right here did not close above or outside of my support— out of my, um, now support zone. It was previously a resistance zone before price broke above it, but we came, tapped back into it, and we didn't get a close below it. And then price ended up treating this previous resistance zone again as a support zone and buying off of here. You're going to see this a lot and notice this a lot when you're trading. You're going to see the same zones you had drawn yesterday or last week are still being respected today. Now, me personally, there are a lot of traders that will have their zones and leave their zones drawn on here for freaking weeks and months even sometimes. Me personally, I like deleting my zones after it's been invalidated to me. But what you'll notice is that you'll be redrawing your zones in very similar areas. Same way we had that other zone drawn right here, you'll be redrawing them in very similar areas because the market is going to reject at the points that it's going to reject. Regardless if you had that zone today, last week, 2 weeks ago, oftentimes it's always going to respect those same zones that you had. So with the analogy of Bitcoin, Bitcoin's always going to reject at that $100 mark or that $150 mark. Like, it's always going to do that regardless if you're drawing your zone based off of the rejection you saw today or the rejection you saw 2 weeks ago or last month or last year. So just keep that in mind. And also don't be so strict because this is something that messed me up, um, in the beginning of my career. I'm not so strict on price stopping right at my zone. It's a general area, and that's why I use boxes. Now I mentioned to you guys that I usually delete my zones after price has disrespected it or hasn't shown that it's still respecting it. Let's say for example I had this resistance zone drawn out and then price finally broke above it and it retested it, but it didn't give a huge move off of it. To me, I'm just going to delete this off my zone, even if this is a valid area where price might reject. I'm the type of person, I like my charts to be super clean. If you guys watch any of my videos, if you watch my trading videos, you can always see that my charts are extremely clean, probably the cleanest charts that you'll probably ever see on the social media space. I just don't like clutter in real life. And I don't look like looking at clutter on my charts. But that kind of leads me to another tip. I told you guys I had a couple tips. The first one was about drawing your zones on the 4-hour time frame or the 1-hour time frame or even the daily chart. The next tip that helps me out a lot and helped me a lot in the beginning of my trading as I started getting better with support or resistance is actually switching to Heikin-Ashi candlesticks. If you don't know what Heikin-Ashi candlesticks are, I've went over them multiple times on this channel, on my YouTube, on Twitter, on Instagram, on TikTok. They are just a different type of candlestick that really smooths out price action. And how you can find it is you hit the dropdown on TradingView here and just press Heikin-Ashi. I want you to look at how the candlesticks change and how much smoother it looks. As you can see, we don't have as much jumble as far as one candlestick being red, the next one being green. Like, it smooths out all of the price action. And the reason why this makes it so much easier to spot support or resistance zones is because you're able to see actual pivot points. Because what happens, let's say this whole rally to the upside here, this whole rally to the upside, we're obviously seeing that price is going up because we're seeing all these green Heikin-Ashi candlesticks. If we go to regular candlesticks though, we can see that we actually had red candlesticks going in this. So this can confuse us and be like, okay, Is this actually a support or resistance zone? Because we're seeing some red candlesticks, even though I'm obviously seeing prices going up, we're also seeing some red candlesticks and that can throw us off. But on Heikin-Ashi candlesticks, it simplifies that. It only shows us the green, which obviously just shows us the trend. But what this does is as soon as we see the other color, we know that that trend has officially ended. So we were seeing green, now we're seeing red. So we know that the trend officially ended at this area, right? This is where the trend officially ended. This is a valid resistance zone. So then, as you can see, if we drag this across, we had price respected again right here. It sold off. Price came to tap into it again right here, and it sold off. Price came to tap into it again. Remember, this is that zone that we literally just went over before, that we had went over before that one. As I mentioned to you guys, the zones, regardless if you draw it today Yesterday, 2 days ago, 2 weeks ago, a month ago, price is going to reject at the same areas most of the time. So as you can see, we can drag this across and just see how much price has respected it, right? Multiple times it's respected it, not just here but here, here, here. It broke above it, came down to retest it, respected it here, respected it here again. And this is just so much simpler to see when you have Heikin-Ashi candlesticks. It just helps me to see actual zones where price has— is actually pivoting versus where price could just have hesitations. Because we don't want to see just a small hesitation. Let's say something like this where price hesitates right here really quickly and continues going up. We don't want this to confuse us and say that this is a support or a resistance zone that we're looking to take a trade off when this could just be a little bit of a hesitation. We want to see real support or resistance zones that we can actually trust. And using Heikin-Ashi candlesticks, we can see that very, very clearly. Now, I told you guys how I draw my zones, um, with regular candlesticks. On Heikin-Ashi candlesticks, I draw it very similar as far as from the top of the wick to the lowest body. Um, sometimes what I'll do if it's too long— because let's— there can be times where, um, Heikin-Ashi candlestick box could be this large, and obviously this is a huge area to look for rejections at. So what I'll do, I'll use Heikin-Ashi candlesticks to find my areas, and then I'll go to regular candlesticks and just mark it off the same exact way that I would mark it off with the wicks being like this, or, uh, how we just went over as far as putting the box on the wick and the body. And as you see, um, we're still getting rejections off of there, rejections off here, rejection here, rejection here. Price broke above, came to retest it, and rejected here. We're still seeing the same rejection. So a lot of times I'll mark it off on regular Heikin-Ashi, and then I'll adjust it, make it skinnier or whatever, based off of the same criteria that I do on regular candlesticks by just switching to regular candlesticks once I've marked off, uh, my Heikin-Ashi candlesticks. Now one more tip for you guys before we go into my entries, because obviously I'm teaching you guys how to draw the right zones, find the right zones, and things like that.. But you guys also need to see exactly how I enter my trades. When do I know I should actually enter into a trade? Because we never know when price is going to continue to respect that resistance zone. It could respect it 30 times, but we never know when that time is when it's going to break through it. So we don't just enter trades as soon as price taps into our zone. We're going to go over the entry criteria that I personally look at. But the third tip, something that has helped me out drastically, is understanding that there are— and there's an even stronger version of regular support or resistance. For, for instance, we know that price goes up, down a little bit, up, down, up, down a little bit, makes all these support or resistance zones as it's going up in specific areas. And this is obviously an uptrend, meaning that ultimately we're going up, right? And then price will go down, up a little bit, down, up a little bit, down, up a little bit, making all these support or resistance zones in between that. And it'll just keep going up and down and up and down, up and down. We have all these support resistance zones. So we— you see we have a resistance zone up here We could have a support zone right down here. We can have support zone right down here. And these are the type of zones that we just looked at where we have multiple rejections at an area or one strong rejection. There's something called change of direction zones that I found out a few years ago, and it has drastically changed the way I trade. And I really just realized it when I was just spending hours backtesting. I realized that there are certain pivotal points and pivotal pivot marks inside of the markets, or inside of price depending on what you're trading, that has a higher likelihood of price rejecting at that area. And they are called change of direction zones. And simply, what a change of direction zone is, when we see we're in an uptrend, price gets to a specific area and switches the direction and starts going in a downtrend. The area that price got to That is called a change of direction zone, and these zones right here are extremely strong. These are the zones where I feel the utmost confidence in. If I see a change of direction zone, I am watching that zone closely to see if I get some entry criteria, because if it gives me entry criteria, the— I— most of the time, that's where I have my biggest trades, where I'm feeling confident about holding my trades longer, where I'm leveraging more on those trades just based off being it being a change of direction zone. Same thing vice versa with down here where we're going in a downtrend, then price got here, and as you see, it got here and started going in an uptrend. These change of direction zones are something that you want to watch out for. I was just talking about how I draw my zones, um, and most of the time I'll delete them after invalidated, but the zones that I keep on my charts no matter what are these change of direction zones, and I'll drag them across. The only time I will take them off— I don't care, it could be on there weeks. It could be on there for months. Only time I'll take them off my charts is if price taps into it, kind of doesn't respect it at all. I don't know why I made price go to the side here, but it just doesn't respect it at all. Then I'll just remove that from our charts because that change of direction zone just wasn't strong enough. It didn't hold long enough. But I'm always keeping my change of direction zones on the chart, and I'm waiting for price to tap into it. But be aware, most of the time price won't come to retest these change of direction zones. It could be for days, could be for weeks. So I don't solely only look for change of direction zone trades. I will wait patiently if it takes days or weeks for price to tap back in to my change of direction zones to potentially take a trade off of them. All right, so now that you guys understand what support resistance zones are, how to draw them— I gave you guys the tips as far as 4-hour, 1-hour change of direction zones using Heikin-Ashi candlesticks— let's go into how we actually put this into play. Because as I mentioned to you guys, we're not just waiting for price to tap into our areas, let's say a resistance zone, and pressing sell as soon as it taps into there. Because as I mentioned, we never know when it's actually going to break out or continue to respect it. So what I do is I look for specific entry criteria after price has tapped into my zones. Now I'm going to show you guys an illustration of it, then I'm going to go on the live charts and show you guys a real example of it. We'll actually go over the trade that I sent out, uh, this morning inside of my Inner Circle. Then I'll also go over a couple more trades to to make sure that you guys kind of understand my thought process and what I look for when I'm looking for these entries based off my zones. So let's say that this is price, and price is just selling down, and we've already created our support zone over here, but price has just been selling down into this area. Then we finally get it to tap into our support zone, right? Keep in mind, most of the time I'm watching this on the 1-hour or the 4-hour time frame. Um, then as soon as price taps into here, I want to see that price is shifting directions as far as people are entering the market here, and let's say we're at a support zone, they're entering here and they're looking to buy off of here. They're looking to buy off of here, and that will cause the price to go up. Now, what I look for to see if price is respecting my support or my resistance zone that I, that I have drawn on my chart is I want to see price slow down. And what that looks like for me is price starts to consolidate, meaning that price just goes up, down, up, down, up, down. Um, inside of my zone or after tapping into my zone, and then I want to see it break out of the consolidation. That's one thing that I look for. Like I said, I'm looking for price to tap into my zone, consolidate, and then break that consolidation. That's one thing. The second thing that I would look for, as I mentioned to you guys, price never just goes straight down, right? Price goes down, up, down, up, down, up, down, up. So what I'd look for is to show that price is switching the trend. Right here, obviously this is a downtrend. In order for me to see that price is creating an uptrend, it has to break one of the previous highs. So on this whole way down, we made a high right here, a higher— a lower high right here, a lower high right here, then a lower high right here. So I know if price taps into my zone and then breaks above the most recent high let's say price then buys up, that is going to create a new higher high because this high would then be higher than this high. So as soon as price breaks above the most recent high, I would enter into the trade. Now keep in mind, this is vice versa with sells, and we'll go over that in a second. But let's say we're looking for buys off of a support zone. We see price trends to the downside, creating all these highs as it's going down. Then as soon as it taps into my support zone, I'd look for price to break above a most recent high, or I'd wait for price to come into my zone, consolidate, then break out of that consolidation, and I would enter as soon as it breaks out of that consolidation. That's showing me that price not only respected this area by slowing down in it, and the volume started slowing down, meaning that there's indecisiveness, which is what I want to see inside of my zones. But then I don't want just indecisiveness, I want indecisiveness, and then I want to see the direction that the market is going is going the direction that I'm looking for. I want to see that I'm winning, basically, or the direction that I'm looking for is winning ultimately. And how I see that is when price breaks outside of that consolidation. So that's really the two things that I look for. And keep in mind, I need all this to happen. I mentioned to you guys, we're looking at this on the 4-hour time frame or the 1-hour time frame. We're waiting for price to tap into our zones, and then we're we're going down. As soon as price taps into my zone, I'm going down to the 1-minute time frame. That's where I'm looking for price to break a most recent swing high or waiting for price to consolidate in. So to recap, I'm marking up all my charts or my support and resistance zones on the 4-hour or the 1-hour time frame. Then as soon as price taps into my zone here, I'm dropping down to the 1-minute time frame and I'm looking for my entry criteria. Then I'll show you guys, um, basically I would just enter, let's say, right here at a break of that swing high. And most of the time I would put my stop loss below the most recent swing low, which in this instance, this is the most recent swing low. So I put my stop loss right below there. And then for my take profits, I'm really just targeting recent highs. So I could target this high up here, I could target this high up here, or I could target depending wherever I want to target. That is up to how I'm feeling, how much volume I think the market has in a day. But I'm just targeting recent highs at that point. Now let's hop into a real life example so you guys see exactly what this looks like on the actual charts. All right, so this is that same zone that we went over when we was first going over how to draw zones. We drew our zone right here because we had multiple rejections off of it. This first rejection, this second rejection. Now exactly how we played this play inside of my Inner Circle and why I sent it out is because price came and tapped back into it. If we fast forward, we can actually see price tapped back into it right here. Let me rewind this so you guys can see what I'm looking at. And remember Right now I drew this zone, I believe, on the 4-hour time frame or the 1-hour time frame. It doesn't really matter at this point. We have the zone drawn. So then as soon as price taps into our zone, which we see it did right here, I would go down to my 1-minute time frame. Now a little trick for you guys, um, is— let me go back to here so you guys see exactly where I'm entering at. But a little trick for you guys and how I make trading kind of as passive as possible is once I draw my zones on the day let's say this is the zone I draw for the day and let's say price is up here, I can just, you can just right-click on your charts and press add alert, or you can hover over here next to this plus button and you can press plus and you can actually press add alert. It's not gonna let me do it right now because I'm in replay feature, but if I wasn't in the replay feature, you would see a button here to press add alert. And what that does is when I make the alert and price comes down and taps into my zone, it would actually send me a notification to my phone That way I don't have to be sitting here looking on my charts 24/7 looking for trades or waiting for price to tap back into my zone. Because I set up my charts every morning— let's say this is a resistance zone I'm looking at— I set up my charts every morning, I know what areas I'm looking for price to tap into, and majority of the day I'm just being patient enough to wait for price to tap into those areas. So that's why I utilize alerts. I set my alerts and I don't do anything until an alert goes off, which is basically telling me that price is tapping into my support zone or my resistance zone. Then as soon as I get that alert, I come to my computer, I go to my 1-minute time frame, and at that point I'm just waiting for my entries. But nonetheless, um, this is the setup. So let me rewind just a little bit. So as you can see, price is selling down into my zone here. This is what I want price to do. I want it to tap into here, and then I'm being patient enough to wait for any of my entry criteria. So we had price tap into here. Our most recent swing high, this is actually a little bit of a peculiar example because price kinda did just shoot straight down. Usually it'll go down, up a little bit, down, up a little bit, down, up a little bit. Then we have all these swing highs to target. But in this example, we don't really have any. The only area of hesitation was really right here. And then the next one was up here. So technically I don't have any entry right now unless price like shoots up here and I get an entry here. Or I'd have to wait for consolidation to happen inside of this zone, which basically would show me that price is slowing down. Then I'd break that consolidation and enter on the break of the consolidation. Let's fast forward and see what happens, because that's exactly actually what happened. Price got into the zone. After tapping into my zone, as you see, it starts to consolidate. We start going up, down, up, down, up, down. As I mentioned, consolidation is simply just— it's indecisiveness. It's showing us that The market doesn't know where to go. The bulls and the bears are both fighting at this point with no clear direction. Now, that's perfect. That's exactly what I want to see because we were selling off heavily. It tapped into our area of interest and it started hesitating, which shows us that this support zone is still strong and it's still being respected. Price created this consolidation. Now I'm just waiting for price to break above this consolidation. So a lot of times what I'll do is I'll just mark off the highest point of the consolidation. Which is right here. That's the highest point. And then I would look for price and wait for price to break above that. So let's see if we get a break above it. Not on that candlestick. We have a break of it right now. So what I would do is I would enter as soon as it breaks above that most recent swing high entry right here. I put a stop loss below the most recent swing low, which is right here. This is the lowest point that price was before I got my entry. Then as I mentioned, I'm targeting recent high points. So I could target up here, I could target up here, I could target up here. It really doesn't matter. Let's just say I'm targeting right here. Um, we can just fast forward this. I think it took a little minute to happen. Boom. And as you see, this trade ended up hitting a full take profit simply by doing exactly what I just went over, where we drew our support zone, we waited for either consolidation or break of a swing high. Technically, we could have had an entry here because we created a swing high here. Then you see price sold back down. So let's say we missed this entry. We could have waited for a break of this entry. There's also consolidation right here too, so we technically could have taken it at the break of this consolidation. But let's say we took it at the break of this one. We do the same exact, uh, thing where we put our stop loss below the most recent swing low. We would have actually got entered into the trade right here, and we could have targeted up here, could have targeted up here. Really could have targeted wherever, but that first entry would have been right here. But that's what I mean by swing high. This is another swing high that was created, but we were already in the trade at that point. So that's one example. Let's go over another example. All right, so let's go over the example that we went over where we had this resistance zone that was created, and then price finally broke above it, came back down to retest it. And as you see, it respected it this time over here, bounced up, then we saw price come back down into it. And let's see if it respects it again. Let's see if we see our entry criteria and what that would even look like. So right here we're on the hourly time frame. Price finally tapped into it, so then I'd go down to the 1-minute time frame. And at this point I'm waiting for either consolidation to form or a break of recent swing highs. So in this instance, we actually have a swing high here, we have a swing high— let's use this tool— swing high here, swing high here, swing high here. This is a small swing high right here, but I wouldn't really trust that one too, too much. So we'd look— we'd have to wait for a break of a recent swing high, which would be either this area, or this area after we tap into our zone. So let's fast forward. We actually made another swing high right here, actually. So we see if we just draw the path, we were— we went down, up, down, up, down, up, down, up, down, up again right here. Now we're going down. So the most recent swing high is now this area. So if we can get a break above this area we would get an entry here. Let's see if we get a break above it. Boom, there we go. We have a break. As soon as we broke above it, we would have entered into the trade. We put a stop loss below the most recent swing low, which is technically right here. If you want to be safer, it could be right here since this swing low isn't that, that strong. But let's just say we put it at this swing low and we can just target a recent high. If we want to target this high right here, we can. If we want to target up here, we can. Let's just start— say we target right here. This is about a 2.5 to 1 risk-to-reward ratio, which basically means whatever we risk, when we win this trade, we'd win 2.5 times as much as that. So let's fast forward, and as we can see, price ended up hitting full take profit right here, really within a matter of a few minutes. This is all by doing the same exact steps that we just went over. I showed you guys One entry with consolidation, one entry with a break of a swing high, which is right here. And this, as I said, I use this across all industries, no matter if I'm trading futures, forex, stocks, it doesn't matter. I treat it the same way. I look for the same thing. I'm starting from the 4-hour or the 1-hour time frame. I'm being patient enough to wait for price to tap back into my zone, and then I'm entering on a break of a recent swing high or consolidation or break of a recent swing low if I'm looking for sells. Let's go over a sales example right now so you guys see exactly what that looks like as well. All right, so here we are on the charts once again. Now, a lot of people ask me how far back am I looking for my zones. Majority of the time I'm looking the day before, the day before that one, or the day before that one. I like my zones and my areas of interest that I'm drawing or looking for rejections off of to have been made or respected within the last day or the last 3 days or so. In this instance, let's say this is some— this is September 19th. This is September 18th, so this zone was made the day before. And what I see here— remember I told you guys I either want to see multiple rejections at an area or one huge rejection. I see that price got to this area and it sold down very strongly. We had two really big candlesticks to the downside. So I would draw this off on my charts same way I showed you guys how to do it, from the body of the highest candlestick to the wick of the highest candlestick, just like that. Now just drag it across. So this time it got close to the area, sold off. We wouldn't have entered that trade because it didn't tap into my zone. Same thing happened here as well. But then we finally got price to tap into our zone right here. So as soon as price tapped into our zone— keep in mind this is drawn on the 1-hour time frame, um, but as soon as price tapped into my zone, I would have went on the 1-minute time frame. And actually, this entry already happened, so let's, let's go back just a little bit. So as soon as price tapped into my zone, I would have waited for a break of a recent swing low or a break of a recent swing high. So as we see here, we see price creates these areas. So let's— let's— price went up, down, up, down, up, down, up, down. Now it's going down. So we have a couple different, uh, well, now we're assuming it's going to go down. We have a couple different lows that we could look for. The first one would be right here. We have another low right here that we could potentially look at. If you wanted to take this one. This isn't as strong of a pullback as this one, so possibly we could just wait for an entry at a break of this swing low. Um, same thing with this one right here. I wouldn't have entered on a break of this swing low. I would have waited for a break of this swing though, because technically the candlestick entered right here. Actually, let's go with this example right here so you guys can see exactly what I'm, what I'm looking at. So let's say price finally tapped into it right here. The most recent swing low would have been right here. This is not a swing low for me, and this is what I talked about before about consolidation versus swing lows. If you guys remember when I was going over, um, why I use Heikin-Ashi candlesticks— so I can see actual pullbacks versus, um, just like consolidation areas. To me, this isn't a pullback, this is just consolidation because we see all these small candlesticks that don't really have clear direction. This is a pullback. We have a big red candlestick to the downside, and then we start going up. So this is the most recent swing low here. So that's why even though price tapped in right here, I wouldn't have entered when price broke this area right here because this isn't really that clear of a pullback. This is a clear pullback. This is a clear pullback. This is a clear pullback. Um, so either way, I wouldn't have entered on a break of this one right here. I'm glad this actually— this example actually came up so you guys can see what's defined as a clear pullback. So we didn't get a break of any of the real pullbacks, which this is a clear pullback right here. Or a recent swing low. Sorry, um, actually in this instance, since we're looking for sales, this would be a recent swing high. So we got price to tap back into it again, and let's see what happens if we move forward. So price actually created this swing low right here. This is also not that strong of a pullback, so I'd probably just wait for my original entry here unless we create another pullback. No, I don't think we're gonna get another pullback, so we would have got entered into the trade right here. At a break of this recent swing low, would have put our stops above the most recent swing high, and we could have targeted any of these lows. We could have targeted here, we could target here, we could target all the way down here. I don't know how far this is going to run. Um, we can see if it runs all the way down here. Let's fast forward and see exactly what ends up happening. Probably go to a higher time frame so this doesn't take 300 years. To show us if we won or lost this. Oh, and as you see, price sells all the way down here and ends up hitting our full take profit after tapping into there— after tapping into here. Like I said, we could have targeted here as well. I just would have held for a better risk-to-reward ratio. This is basically getting close to a 2:1 risk-to-reward ratio, which is usually what I end up taking. I don't really take anything less than a 2:1, um, when I'm taking this specific strategy itself. But that's an entry to the downside. Uh, we went over all the different type of entries that I personally look for. This is exactly how I trade. It's how I've been able to make over $2 million in the past 2 years from just trading, whether it's stocks, crypto, forex, futures, options. Like, I use the same exact strategy. I look for the same exact thing over and over and over and over again. Now, a few common mistakes that I made when I first started off with support and resistance that held me back for a very long time. First of all is I had too many zones. I had 100 million things on my charts. I was looking for bounces off of basically every single part of the chart as possible, and that will never work. You need to be clear and concise. And that's why I told you guys in the beginning of this video, I delete my zones and draw them fresh really every single day so I can see not just less zones on my chart, but I can see where price is recently rejecting off of as far as support or resistance zones that I should be looking at because price has respected it recently, but also zones that are still valid versus having zones that were drawn a year ago or 30 months ago just all over my chart. That's making me super confused. I don't know which ones are my high probability ones versus which ones I kind of just threw on there because I was bored. So definitely having too many zones on your charts or support or resistance zones on your charts can be extremely confusing, and I do not recommend it. Another thing is I expected my zones to work 100% of the time. And we went over multiple examples here of price breaking above resistance zones or below support zones. Now, as I mentioned, that's not the end of the world because we can wait for break and retest. But we shouldn't think that our zones or our support or resistance zones are going to work 100% of the time, or if we respected it 3 times that it's definitely going to respect it a 4th time. That's not how the markets move. We can only act on what the markets tell us, not what we assume is going to happen. That kind of leads me into the third point. And the third mistake that I always used to make is I used to draw my support or resistance, or my resistance zones, and as soon as price tapped into, let's say, my support zone, I would enter buy. I would just enter for a buy because I just assumed that price was going to buy off of it. That lost me a lot of money. I do not recommend that. That is a recipe for disaster. That's why we wait for these entry criteria. That's why we wait for that consolidation.. We wait to see that price is shifting directions and actually bouncing off of our zones. We wait to see that price is actually still respecting our zones, because as I just said, regardless if price freaking respected it 3 months ago when it sold off of it heavily 3 months ago, that does not mean that today price is going to respect off that zone again. So that's why we don't just enter as soon as price taps into my zones. I simply wait after price taps into my zone I wait for my entry criteria, and if the market gives it to me, I will ride the wave and I will profit off of it. With support and resistance zones, it's really just about being patient. Patient enough to wait to only trade after it taps into your zones. Because before, as I mentioned to you guys, I set alerts at my support and my resistance zones, and anything between that I'm not touching. Because before, I would be impatient. I would not be waiting till price tapped into my, uh, my zones. And then I would just be making up trades in the middle of it while I'm waiting for price to tap into my zones. And that cost me a lot of money, a lot of time wasted, and it's never something that's going to be, um, consistently profitable. So that's why patience is a huge thing when it comes to support and resistance zones. Patient enough to wait for the zones to form, and then patient enough for price to tap back into your zones, and then also patient enough to wait for your entry criteria. Because sometimes you can wait all that, and then price could tap into your zone and not give you your entry criteria. That's happened to me countless times, but it saved me so much money by just waiting to make sure that we're actually getting rejections off of our zones. But either way, that is support and resistance explained. It's simple, it's powerful, and it's honestly the foundation of every single trade that I take. But I'm gonna be honest with y'all, knowing the theory is literally just one thing. Seeing it work is where you actually start to see it click inside your mind. So if you want to watch me take a live trade using this exact strategy, click the video right here. I'll show you step by step how I applied everything we literally just went over in this video, and I applied it in action to be able to actually take a support or resistance trade live and make myself a good amount of money. So click here, watch this video so you can see the power of support or resistance in action and honestly gain the confidence to help you replicate it for yourself. I'll see you there.
