Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated:
0
1
00:00:07,100 --> 00:00:12,100
And welcome, everyone, to Section 6 of the course. Divided into two lectures, the first lecture
1
2
00:00:12,100 --> 00:00:17,590
explains The Complete Step-By-Step Trading Plan for Support and Resistance Trading Strategy, whereas
2
3
00:00:17,620 --> 00:00:22,480
the second lecture aimes at explaining a key mistake which you will look to avoid while using this
3
4
00:00:22,480 --> 00:00:23,050
strategy.
4
5
00:00:24,270 --> 00:00:28,830
With that being said, let us understand the complete five step training plan starting from the very
5
6
00:00:28,830 --> 00:00:32,810
beginning of the analysis to exiting a trading position in real time.
6
7
00:00:34,250 --> 00:00:39,830
Open a new price chart of any instrument and download price data starting from 4-hour timeframe to
7
8
00:00:39,830 --> 00:00:45,620
monthly timeframes. Guys, keep in mind that you can open as many charts of different trading instruments
8
9
00:00:45,620 --> 00:00:51,410
as you like. Once you've downloaded price data for one or many charts, make daily timeframes as your
9
10
00:00:51,410 --> 00:00:52,370
default timeframe.
10
11
00:00:52,640 --> 00:00:57,890
This means that every time you close a particular chart on your MT4, you will do so while
11
12
00:00:58,250 --> 00:01:00,230
daily timeframe of that chart is open.
12
13
00:01:00,620 --> 00:01:05,860
This will help you avoid having the same chart saved on different timeframes in your trading platform.
13
14
00:01:07,940 --> 00:01:13,700
Plot key support and resistance levels starting from the monthly charts, make sure that these levels are
14
15
00:01:13,700 --> 00:01:18,650
visible on all timeframes up to 4-hour for your analysis. Please use weekly charts when there
15
16
00:01:18,650 --> 00:01:22,100
is little or no monthly price data available for any security.
16
17
00:01:23,150 --> 00:01:27,980
This is the best time to revisit the examples in Section 3 of the course if you have difficulty
17
18
00:01:27,980 --> 00:01:30,200
labeling these levels on larger timeframes.
18
19
00:01:31,060 --> 00:01:37,780
Convert key levels into support and resistance zones for recent and present price action. The third step
19
20
00:01:37,780 --> 00:01:42,920
is to plot support and assistance zones using key levels near the present price action.
20
21
00:01:43,300 --> 00:01:47,680
Once again, your learning from Section 3 of this course will prove beneficial while plotting
21
22
00:01:47,680 --> 00:01:48,280
these zones.
22
23
00:01:49,150 --> 00:01:55,240
Guys, I also advise to use different colors for these zones to keep your analysis clear. Add volume
23
24
00:01:55,240 --> 00:01:57,430
indicator at the bottom of your trading chart.
24
25
00:01:58,300 --> 00:02:02,890
In the following step, you will add the volume indicator at the bottom of your trading charts.
25
26
00:02:03,490 --> 00:02:09,700
Please assign different colors for high and low volume bars for your analysis. Refer to the second
26
27
00:02:09,700 --> 00:02:11,080
lecture in Section 3.
27
28
00:02:11,080 --> 00:02:17,020
If you require assistance adding volumes to your trading chart. Take a trading position upon the combination
28
29
00:02:17,020 --> 00:02:24,190
of key support or resistance level, a major candlestick pattern and high volumes during that candle,
29
30
00:02:25,000 --> 00:02:28,060
Before I discuss the trade, entry and exit parameters.
30
31
00:02:28,060 --> 00:02:33,500
A key rule that you need to remember for all of the trade entries is that you will never enter while
31
32
00:02:33,520 --> 00:02:34,690
the candle is still running,
32
33
00:02:34,690 --> 00:02:36,400
on 4-hour or daily charts.
33
34
00:02:36,400 --> 00:02:38,610
In fact, you will wait for a candle to close.
34
35
00:02:38,950 --> 00:02:44,350
This is because while the price is still moving within that candle, you have no conclusion about that
35
36
00:02:44,350 --> 00:02:44,790
period's volumes
36
37
00:02:44,850 --> 00:02:46,810
neither the pattern of the candle.
37
38
00:02:48,880 --> 00:02:53,920
So, guys, when entering a bad position, you will always initiate a buy entry above the high price
38
39
00:02:53,920 --> 00:02:59,620
of the candle, which is associated to price reversal or continuation, whereas you stop loss will be
39
40
00:02:59,620 --> 00:03:04,540
just below the low price of this candle or below the last price swing high.
40
41
00:03:05,200 --> 00:03:09,820
On the other hand, during a sell trade, you will take a sell entry just below the low price of the
41
42
00:03:09,820 --> 00:03:11,610
reversal or continuation pattern.
42
43
00:03:11,980 --> 00:03:17,610
That is, the stop loss will be just above the price high of the candle or above the recent price swing
43
44
00:03:17,620 --> 00:03:21,590
high when it comes to deciding to take profits on a sell trade.
44
45
00:03:21,610 --> 00:03:23,690
You have three options to exit the trade.
45
46
00:03:24,100 --> 00:03:29,320
The first option is to close upon a strong reversal pattern with high volumes against the direction
46
47
00:03:29,320 --> 00:03:30,640
of your existing position.
47
48
00:03:31,060 --> 00:03:37,120
The second option is to wait for markets to advance to the next key support or resistance levels and
48
49
00:03:37,120 --> 00:03:38,710
then exit your trading position.
49
50
00:03:39,190 --> 00:03:45,160
Or the third option is to close once you've acquired reasonable profits on a trade and decide not to
50
51
00:03:45,160 --> 00:03:46,410
carry that trade further.
51
52
00:03:47,470 --> 00:03:52,090
Guys, I'm confident that through this lecture and trading plan, you have gained the knowledge on how
52
53
00:03:52,090 --> 00:03:55,180
to combine the three technical indicators in this strategy.
53
54
00:03:56,550 --> 00:04:02,160
When it comes to risk management, by using this strategy, I do not advise risking more than 2-4%
54
55
00:04:02,160 --> 00:04:08,220
of your trading capital on one single trade, also to increase the probability of
55
56
00:04:08,220 --> 00:04:09,040
long-term returns.
56
57
00:04:09,060 --> 00:04:14,850
Please make a portfolio of your favorite forex pairs, metals, energies or stocks, while using this
57
58
00:04:14,850 --> 00:04:17,310
strategy to trade in a professional manner.
58
59
00:04:18,330 --> 00:04:24,330
I personally carry 5-10 positions in a market at all times in my portfolio, and managing my risk
59
60
00:04:24,330 --> 00:04:26,010
correctly allows me to do so.
60
61
00:04:26,550 --> 00:04:31,980
So this concludes the lecture on complete trading plan of the Support and Resistance Trading Strategy,
61
62
00:04:31,980 --> 00:04:33,810
and I will see you in the next lecture.
7077
Can't find what you're looking for?
Get subtitles in any language from opensubtitles.com, and translate them here.