It all starts with a KEY LEVEL (support/resistance) - sRs PRO & sRs 2.0 - January 18th 2021

Hello everyone, this is Jordan. Starting with the euro dollar, this is probably the most uncommon, um, well, not uncommon, it's part of the rules applied there, but we are not trading it that often. So for euro dollar, the overall idea is that we're going down. Right, this is our overall analysis. We're looking for sells. When we're looking for sells and we're using the strategies, what we need to make sure is that the given strategy is agreeing with us. In this case, we are looking for sell setups. So what can we see on the chart? We can see first push right here, consolidation False breaks. And now we have 2 possibilities the way I see it based on this 15-minute chart alone. Um, that thing after the first false break here, we are not able to continue lower, which means the consolidation which we mentioned is very likely to happen. And back to the 2 possibilities: we're either going to stop somewhere around here and then continue lower, or alternatively we're going to create some kind of a larger pullback, larger wave up, uh, that could be zigzag structure or whatever, and then likely to continue lower. Of course, the third option is the price just shoots up and goes and invalidates the whole thing, but this is not something that we're going to discuss. So what do we have here? Why was this attack, um, in place and why was this trade taken? Very simple. As I said, scenario number one is for the price to go ahead and create some kind of consolidation or flat move, taking approximately the highest points of this zone. And we have a range, right? This is our range. So we're next to the top of the range. Some of you might even try to go ahead and draw here some trend lines, which is going to give you a false break. And basically were remaining below that low. So the price reaching that zone more or less is sufficient at that moment. And by sufficient, I mean a level was tested, right? Because when we are buying and selling in the very pure form of trading, if you have a level, you want to see the price, uh, I don't know, if, if you're looking for bounces, the price is going there bouncing, and then you're trading it, right? But you want to see this level first of all checked. Or if you're trading breakouts, you want to see something like that, and this is where you're going to be trading it. So the closer to the level we are— and by level I mean support and resistances— uh, the better. So in this case, what we are waiting for is for the price to go ahead and reach the top of this potential zone. In this case False break of a trendline, inner trendline of some sort here. Oops. And now this is the interesting part. Look what's happening here. Price is creating a low, okay, just like here. And then instead of creating a new high, we're actually breaking the low that was previously formed. In other words, you have a trend microscopic trend, we might call it, right? This move right here. And you have like, uh, highs and lows, highs and lows, highs and lows. And at some point the price is doing a low, and you would be expecting a new high if the trend is going to be continuing, but it fails to do so. That could be false break, that could be double top, that could be lower low Sorry, lower high as we have in this specific scenario, right? This low— sorry, this high again is slightly lower than the previous high. So basically what happens is after the price was pushing up, low, high, not being able to break, and it looks like we're gaining the momentum down. So once we have a breakout of this low That would be the first time the price started creating lower lows. Now that could be seen better on the 5-minute chart, of course, but I'm pretty sure you're following the idea. Next thing, so first of all, you can be drawing trend lines here if you would like, but again, that would be the 5-minute chart, not the 15-minute. Okay, this is too steep here in my opinion, and that move Not, um, not providing very distinguishing waves. Usable, but it could be better. Okay, so look what's happening again. This aggressive trend line is broken. That low right here is broken. Bearish, bearish. 15-minute chart finally turns to bearish as well. Momentum and sentiment 2 out of the 3, and basically that gives us an aggressive setup. So only once the 15-minute chart candle switched, this is the time and place we can start the attack. So if this thing fails and it goes up, we— at least I would continue following the 2 possible setups. Why? Because I know that on the higher timeframes, my account is telling me sell, look for sells, pullbacks and sells. So if this fails, I would be looking for sell once again right here. If that zone is broken, giving me the sell or not giving me the sell doesn't matter, but this zone is broken somehow, then I need to focus on this specific wave, right? The place where the start— the price started moving up, which is this low. Could be that low, just a few Probably less than a pip difference, not a few pips, but something like that, right? And then I'm going to focus on that structure right here, the way it's going to develop, if it's going to break above or not, and if this is going to be corrective or impulsive structure. And then I'm going to be attacking regardless of what's happening next, right? Pretty, pretty simple. I hope I'm not overcomplicating it, but basically that would be the idea. You have a direction from the higher time frame. You have level on the lower time frame. You're trying to identify what's happening in terms of price action. You check whether the software agrees with you or not, and you're looking for the entries. All this is not mandatory to be done. That's why we have this stuff right here. That's why we're checking the higher time frames. That's why we're checking the sentiment. Momentum, and we're doing it on 3 time frames, right? Um, again, it's not mandatory, but if you have an understanding, overall understanding of market structures, market waves, all these things that were just mentioned right here on this setup, it would be valuable, it would be useful for you. Okay, so that's about Eurodollar. Let's increase the pace a bit. Kiwi CAD and Kiwi dollar, the 2, uh, Kiwis that we're following for sells again. Now here the situation is pretty clear. I mean, after this bullish trend, tiny consolidation here, and then the price just started dropping like a rock again. Um, pretty straight move right here. We have a beautiful double wave correction. We also have a zone that would be the entire zone, right? Maybe including the spikes, but pretty much this is the level. And we want as a first zone of resistance this place to hold, and we're holding. It's pretty much perfect, right? The price came, tested it, looks good. So next, what we can do is check the higher time frames, which Looks good. Okay, only the momentum is pushing higher, but still acceptable because that would be an aggressive signal. And then we're looking— not the text, sorry— then we're looking for continuation to the downside. That's pretty much the idea here. Next one we have Kiwi Door, which is more or less identical. And that brings another important question: if you're trading the same currency inside a few currency pairs, try not to overexpose yourself. Here we're talking about positive and negative correlation, and we're talking about overexposure. So if you're trading, let's say, AUDUSD and NZDUSD at the same time in the same direction, since they have positive correlation, you will be most of the times doubling or tripling your exposure depending on the lot sizes, okay, and the risk that you're taking. Basically, chances are if one trade is going to win, the other one is going to win. If first one is going to lose, second one is going to lose as well, okay, due to this very high correlation. It's like trading the same, the same thing. So careful with that, with that. And when you're trading, uh, too many of the same Just control the risk, right? It's good to diversify, but if you're going to trade 2 Kiwis, for example, or 2 Aussies or something which is pretty strongly correlated, you might go ahead and split the risk if you want, for example, right? This is a good option. Um, all right, so again, as I said, Kiwi dollar 15-minute chart. Here we can even start looking At the count as well, if that helps for some. So first wave, third wave, fourth wave. We have a breakout bearish on the four-hour, bearish on the one-hour chart. We're basically looking for continuation down. Absolutely classical setup, which unfortunately couldn't reach the targets. Right? The one-to-one was slightly below this. Lower right here, but in terms of analysis, in my opinion, this is what we should be aiming for. The count is there. The higher time frames are supportive. The lower time frame, the 15-minute chart, the count here is also supportive. So everything looked good. Unfortunately, we have a miss. All right, so this is the last one that we have for 2021. Now we can go ahead and check out very quickly a few of the SRS2 trades. Here we have a bit more, right, starting from even the previous weeks— 12th, 12th, 12th, 13th, etc., etc., etc. But let's start from the top. Right, and we're gonna see how many we're going to cover. Now the first one from the top is silver, right? And inside silver, the situation is a bit mixed on the higher time frames, at least for me. That's why sticking to the lower time frames might be a good idea in such situations, and this is exactly what the team did here. So what we can see at that specific scenario and situation is, first of all, this double wave, right? And this double wave is coming right after a push to the upside, and this is a structure on its own. And once this structure is completed, we can expect the price to complete an ABC. The assumption here, of course confirmed by the rules, is that this is the first wave. We have the pullbacks and we're expecting second wave to be delivered down. So once we get the breakout push, we're kind of trading the pullback here, right? Very short-term, 15-minute chart, and overall The situation looks good. We also have euro yen here. Euro yen for the sales. Now in this case, what we are looking at is a bottom somewhere around this spike. We also can see that the price is moving lower. It's creating. Lower highs, lower lows, right? So basically the trend is bearish. We can see that these two rule number one and rule number two are also showing down. So our our manual analysis is confirming the idea of the sales. Our software is confirming the idea of the sales, and then what we need to find is an entry setup. Now the first setup that we might be looking for is these 2 waves, but that would be too steep, at least for me. Okay, that would be kind of steep. Then the price pushed down. If we start considering this now as first wave, we have a push lower, we have break above. All right, and once we have the break above, this is the place to update the line. So I need to go ahead and do that and cover this spike because that was the low. Once we break above, it has to be updated. And basically now you're working with this low right here if you want to be trading the larger structure. Okay, if you want to go ahead and, uh, try to squeeze the price, or in this case is actually a bit less aggressive than the big one when we compare it, but you can be trading the most recent structure. So what's happening here is we got a confirmation of a breakout of this And then we were trading the last wave with the breakout here. By the way, one simple trick, uh, since this trend line, this one, is pretty, pretty close to the swing, to the low— we cannot really call it a swing, but to the low— you can actually wait for this breakout below the low before you go ahead and start the attack, right? Just for extra confirmation. Um, let's see the 2 losing trades, and I think we can call it a day because we covered many of them. Of course, if you have any questions about the remaining setups, feel free to drop us a comment below. We can always go ahead and discuss it. Or of course, find us in the Telegram group for SRS, and we're going to cover it there directly. So quickly going over DollarCat and Ethereum, uh, for DollarCat we have an aggressive buy. The daily cycle, I'm not going to work with that here and take more of your time, but basically we're experiencing divergences on the higher time frames. And here we can also start counting, and this count also ends with divergence. We can also be talking about false breaks. In this case, this one right here attempted for a false break, immediately rejected, stopped here without any further continuation. Then we have the next one which was false broken right here, and in my opinion at least, we can I don't know if we can go ahead and do that again, but basically the market starts to show us— look how, how it's moving on this part to the downside, and then look what starts happening. Let's use the straight line. Once we break, um, once you break this low, almost immediate rejection, you see. Break below, almost immediate rejection. We don't have these big nice moves to the downside as we had before on the previous swings. Okay, and without even looking at any indicators or histograms or divergences or whatever it is, pure price action, you You can see what's going to happen. This is starting to suggest we might be looking at a potential move to the upside. Of course, 15 minutes, right? Uh, this is where the attack starts, technically speaking. So once that has been observed right here, then we start looking for a potential entry. So we have the 2 waves Some might even go ahead and draw that like this, in which case this is going to be your entry right here. And that, by the way, is probably going to be delivering. But again, for me, this is a bit too aggressive, guys, too steep, right? So this trend line I, I find much more attractive, and breakout Plus, you can see that the price starts to form fair highs here. Okay, low, low, high. This one or that one doesn't matter, but instead of making new lows, now we're actually breaking both of them simultaneously during this candle, plus a trendline. And the price starts to move up. It, it smells like it's going up. It starts to smell bullish, right? And basically the attack is right there trying to get these pips. Now, uh, the part which is not ideal, and it could have been probably a better trade, and we need to talk about, uh, with the traders about that, but Check out the risk-reward ratio, and I keep repeating that time after time. This is your target at the moment for pure one-to-one risk-reward ratio, right? However, look where the swing is. Many times what we experience is the price comes here and then starts doing whatever is going to do. That could be continuation lower. That could be a simple pullback and then continuation. Doesn't matter, but usually you're going to see a reaction near the swing, right? This is ABC. So when you're looking at this kind of setup and you get the breakout and the validation, we're talking about 2, 3, 4, 5 pips, not more. Let it give you the pullback. This zone is interesting. There is a good chance it's going to be retested. Let it give you the pullback and try to attack it right here. So then the target could be slightly lower below this swing. Okay, just a friendly reminder. Now in this case, we don't have the pullback. As we can see, it went straight up, but look what's happening. Okay, near the top. So basically, that's, that's what I'm referring to, especially if you're going to be trading pullbacks or anything like that when the trend is not really with you. Okay, uh, make sure your targets are closer to the swing that you're attacking or slightly below it, ideally, because technically speaking, this is the top, but this zone starts from somewhere around here. Look at this spike. Look at where the price closed here. Look at this spike, and then you have all these candles right here. Okay, and when you look at it this way, I'm not sure about the spread, but the bid is going to be crossing that zone. Okay, it even actually went a bit higher, but that's the idea. The lower you go, so let's say this is your resistance zone and you're buying, right? If this is the actual resistance zone and it's clear resistance zone, it's not like some huge zone that the price might be penetrating, but it's a tiny one, 5-10 pips. Try to aim for a target which is slightly below it, right? I don't care what what someone might be saying about the risk reward ratio and. Going negative, etc., etc. I prefer to take 0.7 at the end when it comes to collecting the profit rather than lose the trade. Okay, especially if I'm going counter, counter the trend that is happening on the current time frame or higher time frames, or I'm trading the pullback on the higher time frame, right? Especially in such situations, it's much better To get the money as quick as possible, or at least move the stop loss when you see something against. In this case, I don't see anything against, to be honest, against. Okay, um, I wouldn't trail the stop if I would be trading this one. Okay, I wouldn't trail the stop, but again, I'm, I'm probably going to be missing this trade because I would have been waiting for a pullback which was never delivered, and then the move happened. So for me, that would be probably a skipped missed trade. Well, when we look back at the chart, it's very easy to judge and to say I would have done this, I would have done that, right? But overall, we, we should be prepared about these things and Practice, practice, practice, practice as much as possible, because once it happens live on the chart, even if you're trading with, I don't know, $100 or $1,000, there is emotion. It's not the same as when you're looking back at the chart in the history. It's simply not the same. And if you add to that the emotion from trading live money Again, it doesn't matter how small the account is. The feeling is different. So practice as much as possible. That's why we have these screenshots, by the way, here, right? You can go ahead and you can try to figure out why was this trade taken. If you don't find a logical explanation or you believe it should not have been taken. Copy paste it to the Telegram group. Bring it up for discussion. Let's see what our traders have to say. Let's see what other people think about it. Okay, the truth is usually discovered in the discussion, right? Something like this. So the more you discuss and the more you get familiar with these setups, with these specific setups, the easier it would be for you. To handle these situations live. Practice, practice, practice. Again, again, I'm telling you guys, I'm not smarter than any of you. Vlad is not smarter than any any trader out there. It's all about having enough time to practice something to perfection, and then you start master it. That's it. That's the big secret. Okay, just. Having more time to do something compared to other people. If you go to the gym regularly for one year and I go to the gym every month or so, once a month, there you have it. Does it mean that you're stronger than me? No, you just have better will. Same here with trading, and these things are going to help you get there much, much faster. Okay, but it takes, um, it takes effort from your side as well. So that would be all for this week. Let's hope we have a better 2021. Uh, next week we're going to continue. Hopefully our coders are working on, on Delta as well, so that must be fixed, I hope. This week, in the middle of the week. I don't know, we're going to test it as soon as possible and start uploading everything again because this stuff is really useful and we get the feedback and it's good when, when people value it and appreciate it and it helps them, right? So guys, if you have any questions, leave us a comment below, um, or just thumbs up if you like this content, and I'll see you next week. Thank you. Thank you.