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3 Things You Didn’t Know About Support & Resistance That Will Shock You 

 October 29, 2015

By  Rayner

Last Updated on

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!

Do you want to learn a new trading strategy that allows you to profit in bull and bear markets? 

In my FREE trading course (valued at $48), I will teach you this powerful trading strategy step by step, along with charts and examples.

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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.

  • 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.

  • 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

  • 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

  • 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

  • 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 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?

      • 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.

  • 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.

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