Original subtitles

0 And welcome, everyone, to Section 6 of the course. Divided into two lectures, the first lecture 1

explains The Complete Step-By-Step Trading Plan for Support and Resistance Trading Strategy, whereas 2

the second lecture aimes at explaining a key mistake which you will look to avoid while using this 3

strategy. 4

With that being said, let us understand the complete five step training plan starting from the very 5

beginning of the analysis to exiting a trading position in real time. 6

Open a new price chart of any instrument and download price data starting from 4-hour timeframe to 7

monthly timeframes. Guys, keep in mind that you can open as many charts of different trading instruments 8

as you like. Once you've downloaded price data for one or many charts, make daily timeframes as your 9

default timeframe. 10

This means that every time you close a particular chart on your MT4, you will do so while 11

daily timeframe of that chart is open. 12

This will help you avoid having the same chart saved on different timeframes in your trading platform. 13

Plot key support and resistance levels starting from the monthly charts, make sure that these levels are 14

visible on all timeframes up to 4-hour for your analysis. Please use weekly charts when there 15

is little or no monthly price data available for any security. 16

This is the best time to revisit the examples in Section 3 of the course if you have difficulty 17

labeling these levels on larger timeframes. 18

Convert key levels into support and resistance zones for recent and present price action. The third step 19

is to plot support and assistance zones using key levels near the present price action. 20

Once again, your learning from Section 3 of this course will prove beneficial while plotting 21

these zones. 22

Guys, I also advise to use different colors for these zones to keep your analysis clear. Add volume 23

indicator at the bottom of your trading chart. 24

In the following step, you will add the volume indicator at the bottom of your trading charts. 25

Please assign different colors for high and low volume bars for your analysis. Refer to the second 26

lecture in Section 3. 27

If you require assistance adding volumes to your trading chart. Take a trading position upon the combination 28

of key support or resistance level, a major candlestick pattern and high volumes during that candle, 29

Before I discuss the trade, entry and exit parameters. 30

A key rule that you need to remember for all of the trade entries is that you will never enter while 31

the candle is still running, 32

on 4-hour or daily charts. 33

In fact, you will wait for a candle to close. 34

This is because while the price is still moving within that candle, you have no conclusion about that 35

period's volumes 36

neither the pattern of the candle. 37

So, guys, when entering a bad position, you will always initiate a buy entry above the high price 38

of the candle, which is associated to price reversal or continuation, whereas you stop loss will be 39

just below the low price of this candle or below the last price swing high. 40

On the other hand, during a sell trade, you will take a sell entry just below the low price of the 41

reversal or continuation pattern. 42

That is, the stop loss will be just above the price high of the candle or above the recent price swing 43

high when it comes to deciding to take profits on a sell trade. 44

You have three options to exit the trade. 45

The first option is to close upon a strong reversal pattern with high volumes against the direction 46

of your existing position. 47

The second option is to wait for markets to advance to the next key support or resistance levels and 48

then exit your trading position. 49

Or the third option is to close once you've acquired reasonable profits on a trade and decide not to 50

carry that trade further. 51

Guys, I'm confident that through this lecture and trading plan, you have gained the knowledge on how 52

to combine the three technical indicators in this strategy. 53

When it comes to risk management, by using this strategy, I do not advise risking more than 2-4% 54

of your trading capital on one single trade, also to increase the probability of 55

long-term returns. 56

Please make a portfolio of your favorite forex pairs, metals, energies or stocks, while using this 57

strategy to trade in a professional manner. 58

I personally carry 5-10 positions in a market at all times in my portfolio, and managing my risk 59

correctly allows me to do so. 60

So this concludes the lecture on complete trading plan of the Support and Resistance Trading Strategy, 61

and I will see you in the next lecture.