Have you tried to go long at support but your order isn’t filled?
Or perhaps…
You go long at support and got stopped out, only to watch price reverse and hit your target profit?
Don’t worry, you’re not alone.
In this video post, I’ll crack the 3 biggest myths behind Support & Resistance.
Once you’ve learnt the truth, you’ll never trade Support & Resistance the same way again.
I hope you’ve enjoyed this week’s video post. As always, comments are welcomed and encouraged. Cheers!
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Fantastic.
Confirms what I have been arguing about with many other traders for years. At last someone who actually “thinks” through how the market actually works.. Well done Rayner.
Hello Ken,
It’s based on my experience and has served me well so far.
Glad to know we’re on similar footing. Cheers!
Rayner
Sir please tell me good stratagy for Indian stock market
My trading approach is trend following.
You can check it out here.
Rayner
Thanks so much eye opener (^_^)
You’re welcome Maurice 🙂
Rayner
Thanks, this validates my recent observation on support and resistance, being that it is more an area than a line as you had mentioned. What would be a sensible band that we may enter stoploss in your opinion.
Hi Margaret,
I use 2 ATR as my stoploss.
You can check out this video here for an explanation.
Don’t hesitate to let me know if you’ve got any questions, I’ll be glad to help.
Rayner
Hi Rayner,
Talking about stop loss, please make a subject about your Trailing Stop, (in video should be great).
Thank you.
Hey Taufiq,
Thank you for your suggestions.
I’ll try to think of something and see if I can come up with a post for it.
Cheers!
Rayner
Excellent post, I will adapt a lot from this video into my trading plan!
One question: if your bias is LONG, and price touches the upper side of the resistance zone, do you enter immediately with a with 2 ATR SL (to not miss the trading opportunity because of an “undershot” situation), or wait for more confirmation?
Have a nice day and thanks again,
Greg
Hi Greg,
That’s a good question here and there’s no hard and fast rules.
You could wait for some sort of candlestick pattern to show price rejection, then you enter.
Or you could simply place a buy limit order and have your SL 2 ATR away. This largely depends on your psychology towards trading, whether you prefer having a ‘confirmation’ or not.
Rayner
Thank you for the reply, I’ll do some backtesting to see which option works better. :]
You’re welcome Greg.
I hope to hear your results soon 🙂
Rayner
I wanted to say “support zone” in the previous post, sorry.
No worries, it’s all good 🙂
Rayner thank for your clarification about support and resistance .
the more they are tested the weaker is their strength . Please is it the same principle as Elliott waive . Since I see a lot of professional trade using his analysis or can you explain to us what I’d Elliot waive thanks
Hi Scoan,
I’ve not used elliot wave so I can’t comment on it.
Rayner
Absolutely right in all respects. Trying to trade within a trading range off support and resistance is a losing game in my experience. A much better approach is to consider the trend at the next higher timeframe and then anticipate a breakout of the range in that direction. You might be wrong a few times but does not cost you much as can have a tight stop but the time you are right you normally can make good profits.
Nice lesson, keeping it real as always.
Jeff
Hello Jeff,
Yes I’d prefer trading trends myself because of a favorable risk to reward if I manage to capture a trend.
Glad to know you enjoyed the lesson 🙂
I hope to hear more from you in the near future.
Rayner
Thank you Rayner 🙂
Shlomi
You’re welcome Shlomi 🙂
Rayner
Thank you for sharing this 🙂
You’re welcome Farid 🙂
Sir it’s better try to give breakout and breakdown with trend reversal with the help of this video , ., area of support and resistance.
Thanks a lot sir
Hi Amar,
Thank you for your feedback. That could be something for another post.
Rayner
hi rayner,
so if price ‘overshoot’ we can use 2xATR to prevent our SL from getting hit,
But how about when price ‘undershoot’? whats the best way to jump into trade and not miss the trade?
Hey Farid,
I usually let the trade go if price undershoots.
But if you want to trade it still, you can still use 2 ATR for your stop loss.
Rayner
Thanks Rayner for the good job,am having issue with time frame usage I get more result on daily time frame but it is difficult to wait for a candle to close ,I will like learn how to trade lower time frame and which lower time frame is the best.
Hey Michael
There’s no best timeframe. You’ll need to figure which suits you best depending on your time availability to trading.
Thank your Rayner for the share, I have always thinking of some kind of chasing stops talking about overshoot from the charts.
You’re welcome Minh!
always enjoy a lesson from you
glad to hear that, Albert
Do you have any other video explaining in more detail how to draw support and resistanze zone?
For years i couldn’t figure out how to properly draw s/r.
I don’t have such a video.
cheers
Your teaching method is crystal clear. I like it so much.
You’re welcome, Kizo.