All language subtitles for 1. The Complete Five-Step Trading Plan

And welcome, everyone, to Section 6 of the course. Divided into two lectures, the first lecture
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explains The Complete Step-By-Step Trading Plan for Support and Resistance Trading Strategy, whereas
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the second lecture aimes at explaining a key mistake which you will look to avoid while using this
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strategy.
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With that being said, let us understand the complete five step training plan starting from the very
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beginning of the analysis to exiting a trading position in real time.
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Open a new price chart of any instrument and download price data starting from 4-hour timeframe to
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monthly timeframes. Guys, keep in mind that you can open as many charts of different trading instruments
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as you like. Once you've downloaded price data for one or many charts, make daily timeframes as your
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default timeframe.
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This means that every time you close a particular chart on your MT4, you will do so while
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daily timeframe of that chart is open.
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This will help you avoid having the same chart saved on different timeframes in your trading platform.
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Plot key support and resistance levels starting from the monthly charts, make sure that these levels are
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visible on all timeframes up to 4-hour for your analysis. Please use weekly charts when there
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is little or no monthly price data available for any security.
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This is the best time to revisit the examples in Section 3 of the course if you have difficulty
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labeling these levels on larger timeframes.
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Convert key levels into support and resistance zones for recent and present price action. The third step
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is to plot support and assistance zones using key levels near the present price action.
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Once again, your learning from Section 3 of this course will prove beneficial while plotting
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these zones.
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Guys, I also advise to use different colors for these zones to keep your analysis clear. Add volume
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indicator at the bottom of your trading chart.
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In the following step, you will add the volume indicator at the bottom of your trading charts.
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Please assign different colors for high and low volume bars for your analysis. Refer to the second
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lecture in Section 3.
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If you require assistance adding volumes to your trading chart. Take a trading position upon the combination
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of key support or resistance level, a major candlestick pattern and high volumes during that candle,
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Before I discuss the trade, entry and exit parameters.
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A key rule that you need to remember for all of the trade entries is that you will never enter while
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the candle is still running,
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on 4-hour or daily charts.
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In fact, you will wait for a candle to close.
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This is because while the price is still moving within that candle, you have no conclusion about that
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period's volumes
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neither the pattern of the candle.
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So, guys, when entering a bad position, you will always initiate a buy entry above the high price
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of the candle, which is associated to price reversal or continuation, whereas you stop loss will be
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just below the low price of this candle or below the last price swing high.
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On the other hand, during a sell trade, you will take a sell entry just below the low price of the
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reversal or continuation pattern.
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That is, the stop loss will be just above the price high of the candle or above the recent price swing
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high when it comes to deciding to take profits on a sell trade.
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You have three options to exit the trade.
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The first option is to close upon a strong reversal pattern with high volumes against the direction
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of your existing position.
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The second option is to wait for markets to advance to the next key support or resistance levels and
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then exit your trading position.
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Or the third option is to close once you've acquired reasonable profits on a trade and decide not to
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carry that trade further.
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Guys, I'm confident that through this lecture and trading plan, you have gained the knowledge on how
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to combine the three technical indicators in this strategy.
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When it comes to risk management, by using this strategy, I do not advise risking more than 2-4%
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of your trading capital on one single trade, also to increase the probability of
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long-term returns.
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Please make a portfolio of your favorite forex pairs, metals, energies or stocks, while using this
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strategy to trade in a professional manner.
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I personally carry 5-10 positions in a market at all times in my portfolio, and managing my risk
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correctly allows me to do so.
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So this concludes the lecture on complete trading plan of the Support and Resistance Trading Strategy,
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and I will see you in the next lecture.