$50 to $10,000 Binance Future Trading support and resistance Part1
Summary
TLDRThis video tutorial delves into the strategic use of support and resistance levels for trading in the financial markets. The presenter, utilizing a four-hour time frame, demonstrates how to identify key levels on charts to determine optimal long or short positions. Despite a missed trade opportunity due to market movement, the video pivots to a live trade, emphasizing the importance of contrarian thinking influenced by a leading indicator. The presenter also discusses the volatility around the CPI data release and the significance of adapting to market conditions, concluding with a detailed analysis of support and resistance in various cryptocurrencies.
Takeaways
- 📈 The video discusses the concept of support and resistance in trading, explaining how to identify key levels on a chart to determine when to go long or short.
- 🕒 The presenter is using a four-hour time frame to analyze the market and is preparing to go live as the market starts to push up.
- 📊 The presenter uses horizontal lines to identify key support levels where the market has historically bounced off, indicating potential long positions.
- 📉 Despite the current market push, the presenter believes it will take a different direction, based on a leading indicator not shown in the provided data.
- 🤔 The video emphasizes the importance of going against the majority when a controlling indicator shows a high number of long positions compared to short positions.
- 🔄 The presenter plans to short the market, contrary to the recent support level, based on the controlling indicator and the belief that the market will break the current support.
- 📊 The concept of support is explained as a level where the market often bounces off, while resistance is where the market is rejected, and these can sometimes switch roles.
- 📉 The presenter predicts a market dump to key support areas, suggesting a short position based on this analysis and the controlling indicator.
- 🔢 The video mentions using different time frames for analysis, with the four-hour, daily, and one-hour time frames being effective for the presenter.
- 💡 The presenter uses a potential Head and Shoulders pattern as a reason for taking a short position, indicating a possible market reversal.
- 📝 The video concludes with a review of the trade and analysis, noting that while the market direction was predicted correctly, the trade was not executed due to the market not reaching the set limit order.
Q & A
What is the main focus of the video?
-The main focus of the video is to demonstrate how to identify support and resistance levels on a chart to determine when to go long or short in the market.
What time frame is the speaker using for their analysis?
-The speaker is using a four-hour time frame for their analysis.
Why does the speaker believe it's too late to catch the current trade?
-The speaker believes it's too late because the market has already pushed up from a key support level, and they anticipate the market will take a different direction.
What is a 'controlling indicator' as mentioned in the video?
-A 'controlling indicator' refers to a leading indicator that the speaker uses, which in this case shows a significant difference in the number of long and short positions, suggesting a potential market reversal.
Why does the speaker suggest going short even after identifying a major support level?
-The speaker suggests going short because the majority of traders are going long, and the controlling indicator indicates that the market may reverse direction.
What is the general rule for identifying potential breaks in the market based on the script?
-The general rule is that if the market touches a specific level more than three times, it is likely to break that level.
How can support and resistance levels be used to an advantage in trading?
-Support and resistance levels can be used to identify potential entry and exit points for trades, as well as to anticipate potential market reversals.
What is the significance of the market touching a resistance level multiple times as described in the video?
-When the market touches a resistance level multiple times, it indicates a strong barrier that the market has struggled to overcome, potentially leading to a price drop if the resistance holds.
Why did the speaker choose to trade on Binance despite primarily using BuyBit?
-The speaker chose to trade on Binance because they have a 50 Challenge going on there, and it's also a platform they are comfortable with.
What is the potential downside of trading with limit orders as illustrated in the video?
-The potential downside is that the market may not reach the specified limit order price, causing the order not to be executed and missing out on potential profits.
How does the speaker suggest traders should rectify a situation where a limit order is not triggered?
-The speaker suggests trading on a market order in such situations to ensure participation in the market movement, especially for small account sizes.
What is the speaker's strategy for trading less volatile cryptocurrencies like ADA?
-The speaker prefers trading less volatile cryptocurrencies like ADA because they are more predictable, and the strategy involves identifying key support and resistance levels for potential trades.
What additional trading strategies does the speaker mention using alongside support and resistance analysis?
-The speaker mentions using sentiment trading and controlling indicators, which are analyzed in previous videos.
Outlines
📈 Trading Support and Resistance Identification
This paragraph introduces the concept of support and resistance in trading, explaining how to identify key levels on a chart to determine entry points for long or short positions. The speaker uses a live market example on a four-hour time frame, highlighting a recent price push from a significant support level. The video aims to demonstrate taking a live trade based on these concepts, with a twist based on a leading indicator and market sentiment. The speaker emphasizes the importance of going against the majority when a controlling indicator shows a significant disparity between long and short positions.
📊 Understanding Support and Resistance in Technical Analysis
The speaker delves deeper into the technical analysis of support and resistance, using chart illustrations to show how the market interacts with these levels. The explanation includes the general rule that a level touched more than three times by the market is likely to be breached. The paragraph also covers how support and resistance can transform into each other and how different time frames can provide varying perspectives on these levels. The speaker shares personal trading strategies, including the preference for certain time frames and the decision to short the market based on the current sentiment and resistance levels.
🚀 Live Trade Execution and Strategy Review
The video script describes the process of executing a live trade using Binance and the decision-making process behind choosing to short specific cryptocurrencies like ADA and METIC. The speaker discusses the importance of trading on key levels, the potential formation of a Head and Shoulders pattern, and the use of limit orders. The paragraph also includes a brief analysis of the trade's outcome after one and a half days, reflecting on the trade's direction and the impact of not using market orders for execution.
🔄 Post-Trade Analysis and Future Trading Insights
In this final paragraph, the speaker reviews the trade and analysis conducted using support and resistance, discussing the market's behavior in relation to the predicted patterns. The speaker acknowledges the limitations of trading with small accounts and the importance of being overfunded and under leveraged. The paragraph concludes with a comparison of different cryptocurrencies' reactions to resistance levels and a teaser for future videos on trading strategies, including sentiment analysis and the use of controlling indicators.
🗣️ Closing Remarks and Invitation to Join Trading Community
The speaker wraps up the video with closing remarks, summarizing the importance of the discussed trading strategies and inviting viewers to join a free Discord group for daily trading signals and strategies. The speaker, identified as 'bossy designer,' encourages viewers to watch the next video and use an affiliate link provided in the video description to gain access to the trading community.
Mindmap
Keywords
💡Support
💡Resistance
💡Long Position
💡Short Position
💡Horizontal Array
💡Time Frame
💡Controlling Indicator
💡Open Interest
💡Limit Order
💡Head and Shoulders
💡Sentimental Trading
Highlights
The video discusses the concept of support and resistance in trading, explaining how to identify key levels on a chart to determine when to go long or short.
The presenter uses a four-hour time frame to demonstrate the market's reaction to a key support level and the decision to go long or short based on this.
A live trade is taken during the video, showcasing the application of support and resistance in real-time market conditions.
The importance of a leading indicator is highlighted, which influences the decision to take an opposite trading position despite market support.
The concept of a controlling indicator is introduced, which suggests trading in the opposite direction of the majority when there's a significant discrepancy.
The presenter predicts a market direction change based on the controlling indicator and market support levels, choosing to go short instead of long.
The video emphasizes the volatility of the market around economic data releases, such as the CPI data, and the strategic decision to stay out of the market during such times.
Support and resistance levels are defined and their significance in technical analysis is explained, including the rule of market touching a level more than three times before breaking it.
The potential of support turning into resistance is discussed, illustrating the dynamic nature of these levels in market trading.
Different time frames for analyzing support and resistance are explored, with a preference for the four-hour, daily, and one-hour time frames.
The presenter shares personal trading preferences, including a preference for less volatile assets like ADA over more volatile ones.
A detailed walk-through of placing a trade using support and resistance levels, including the selection of entry and exit points.
The potential formation of a Head and Shoulders pattern is identified as a reason for the decision to go short in the market.
The presenter discusses the limitations of trading with limit orders, especially in a volatile market and the importance of being overfunded and under leveraged.
A review of the trade and analysis is conducted, highlighting the accuracy of the market direction prediction but acknowledging the order was not executed.
The video concludes with a promise of a follow-up video to continue discussing support and resistance, and the importance of adapting strategies when orders are not triggered.
An invitation to join a Discord group for sharing daily trading strategies and signals is extended, emphasizing community and collective learning.
The video ends with a summary of the importance of combining support and resistance with other trading strategies like sentiment analysis for comprehensive market predictions.
Transcripts
in this video we're looking at support
and resistance how to find key levels on
the chart to know exactly when you
should be going long or going short or
on the market now this is a perfect time
for me to make this video I'm on a four
hour time frame as I was actually
preparing to go live also started
recording the market started pushing up
here but the most significant thing is
that if I bring my horizontal array here
you can see that it's pushed up from
this key level of support that's where
the market has been you know coming to
bounce off to and also over here you can
see that using the previous two supports
on the market that's when we actually be
able to go long here but now it's
actually too late to catch this trade
and I actually believe that the market
is going to take a different direction
from here so in this video I'm going to
be taking a live trade with you guys now
you recall that in my previous videos in
many of my previous trades I use support
and resistance to determine where
exactly I should be going long or going
short on the market and 99 of all the
times that I've done this year on a
stream or rather just you know preparing
a YouTube video it always worked and we
always banged a profit and you guys will
recall that we'll make profit of more
than 200 percent on a single trade using
this very same strategy but now we're
going to be doing the exact opposite and
the reason why I'm doing that is simply
because of a leading indicator that I
see on the charts but obviously not on
this chart on this data here and it's
something that I've already spoken about
in my previous videos that is a
controlling indicator over here the
number just went down but when I started
recording this was at 90 million so 90
million in Long position and only 30
million in short position whenever the
majority of people are doing something
we should be doing the exact opposite
it's something I've been talking about
on my previous videos as well so that's
what we're going to be doing here we're
going to be going short even though we
just had this major support here as you
can see there's huge support here and
the market Came Crashing Down bounced
off that and then shot up again now
instead of us you know continuing to go
long in this case we're gonna take a
short position why because most of the
people right now are going long so
meaning most of the people are
predicting that the market is going to
continue on this direction here but
because we know something called a
controlling indicator we're going to be
using that in this video to actually
short the market if you want to be able
to short the market as well I use buy
bit as my number one exchange to trade
Futures Market you can find the link in
the description of this video that link
alone gives you up to thirty thousand
dollars and by doing that you can
actually join our Discord where we share
these trading ideas before they actually
happen so we already discussed this on
our Discord server and we knew that the
CPI data was coming up and the market
was going to be very volatile in fact on
my previous videos I told you guys that
within this period here of the 12th of
December I was gonna stay out of the
market because the market was going to
be volatile it now this is a clip from
that video but obviously now there's a
CPI data coming out on the 12th of
December so that's going to be in four
days and maybe that's when you want to
be out of the market because the markets
tend to be then volatile now as you can
see guys after posting that video here
the market started being extremely
volatile and now we're getting another
pump here and my prediction is that
we're gonna get another dump coming down
to these key areas here on the market so
that's why I want to take this time to
short the markets but first let's look
at support and resistance what is it and
how can we trade it how can we use that
to our advantage now it's very simple if
you come here on the chart you can see
that
the market has actually came to touch
these levels here many times you can see
like that
went up and came to touch it one more
time before going up right now and I
believe it's gonna come down here so the
market came and touched these levels
more than three times and a general rule
when you're trading technical analysis
is that once the market comes to touch a
key specific level on the charts more
than three times it will most likely
will break it so that's what we're
expecting here is that the market will
now eventually break this support here
so that's what support is it's a key
level on a charge where the market most
often come and actually bounce off that
level so you're finding supports there
so that's what support is and the
opposite of that is going to be the
resistance if we come here and maybe
actually draw a line here on top
and here we can see that the market got
rejected and the reason why was the
rejected is simply because here there is
also some resistance here on top not
only that right now we're getting
rejected at these key levels here on top
now at this key level you can see that
the market has been rejected
here before and has also been rejected
over here also being rejected over here
and then went up
drop down and find this key level of a
support here and then obviously there's
another rejection here here it didn't
touch but you can see more or less that
there's a trend within around this key
area here where we're getting rejected
so maybe let me go ahead and just
brighten this up by maybe selecting a
thicker line like that and maybe just
make it white as well so that you guys
can see you can see here that there's a
huge resistance that's why the market
went up there and re-tested those levels
and that's what I'm expecting that is
going to happen on the market right now
you can actually use very different time
frames in order for you to see this but
the ones that tend to be working out for
me is actually four hour time frame and
also a daily time frame even one hour
time frame will tend to work so for
example if we change this to one hour
we'll be able to see the very same data
here that the market came to touch these
levels here
obviously ichat is now sort of like
dating let's go ahead and just clean it
up and here you can see that the market
went up and found this resistance here
and right now we're trading around this
key area and also previously there was a
huge resistance around this key area now
that key area can now be sort of like a
support meaning the market can count
bonds off here but I strongly believe
that even if it pumps up it's still
going to come down here that's why I
want to take a short position that's my
number one reason and my second reason
is simply because majority of Traders
right now are going long and I need to
do the exact opposite especially if the
discrepancy is too high here and that's
what basically support and resistance is
and obviously you can try this out on
different assets as well and metic has
actually enough data compared to Ada
over here we can see as well the market
came to touch this level here but here
you can see another resistance here on
top another resistance here on top and
also many resistance here on the other
side let's just go ahead and increase
this line so that we can see exactly
what we're talking about we're going to
make it white and increase it so you can
see that is a resistance here on top if
we scroll over we can see that we had
also this key area which is now
resistant was previously a support So
support can become resistance and it's
very important to keep that in mind so
let's go ahead and reset this now let's
go ahead and also place a trade I'm
going to be using binance to place this
trade because I have a 50 Challenge on
binance a lot of you guys have been
asking me to make a finance video but
you guys know that I trade on buy bit
and like I said you can find the link to
pipe it in the description of this video
now here I can just come I don't know if
I want to trade Ada or metic Ada for me
is less volatile compared to the other
assets so let me open that one again
here we can see that the market is
bouncing off this resistance here and
also some key level of support here on
the other side so we're not going to
place a trade on a market order however
we'll wait for the markets to retest the
previous High which is going to be
around this key area here so that's when
we actually want to call short even
though the market can actually drop
immediately after this but that's where
I'm actually comfortable on going short
and the price is going to be 0.01 810 so
let's go ahead and deposit some funds
here on finance
foreign
I don't know if you can see it but
there's a potential Head and Shoulders
that is actually forming here
if we look at that there is a potential
Head and Shoulders that's why I think
going short right now will be a good
idea now I'll go ahead and place a trade
exactly on these key levels because here
we have some level of support or rather
resistance here on top so that's when I
want to be placing a trade so these are
the key levels where I'm actually seeing
some resistance here on top as you can
see there's some resistance here and
that's where I want to place a trade
right here so my price is zero 31 that
seems to be fine and then from here I'll
go on and short the market
my order was placed successfully now the
issue is that when you're trading here
on finance you can actually see your
order however if you're trading on
private you actually see the line here
where you have your limit order however
if I click on position we'll be actually
be able to see our order over here so
basically what we're going to be waiting
for is the market to come and touch this
line here which is now going to be our
resistance we can also say that right
here is also a resistance however I am
comfortable taking this line here on top
now there's a high likelihood that the
markets can actually start dropping
immediately from here but there is also
a likelihood that it may retest these
levels here before dropping back down
all right so it's been about one and a
half days since we placed our trade and
did our analysis using support and
resistance and now it's time for us to
actually review our trade and our
analysis and see how much money we have
made if our trade got executed now as
you recall that previously obviously it
is in this very same video but this is
what we're looking at here that we've
got this key area here of support
Enterprise was actually trading around
this price range at that time but then
we had initially predicted that the
market was going to go and touch this
white line here before dropping back
down if we come back here on binance you
can see that this is the analysis that
we had done and then we basically threw
this red line here on top and we said
that the market was going to bounce off
that and we're using that as a
resistance and we're actually trading
this on Ada however you can see that the
markets dropped as predicted here came
came back up but never really came to
touch these levels here and then start
going down again here you can see that
overall we were actually right on the
direction that the market was going to
take however the market didn't come and
touch our order here that's the
disadvantage of trading with limit
orders because at that time we were
trading around in this range here had we
just took the trade immediately
obviously we would have been in profit
right now but that's what happens when
you're trading with small size account
because you want to be as precise as
possible so that's why I always say that
be over funded and under leverage
because in that case you can allow the
markets to actually go on the opposite
direction for a little bit before taking
the direction that you had initially
predicted so that's what happened you
can see that we still have our order
here didn't get executed however if you
actually come back here you can see that
if you look into you know the other
cryptocurrencies let's look at metic for
example you can see that metic actually
came and re-tested the resistance here
on top before dropping back down so it
was just unfortunate that we're trading
88 Ada is not as volatile as other
cryptocurrencies but I like to trade it
because a currency that is not too
volatile it's actually very predictable
I'll make a separate video about that
and if we come back to let's look at
Bitcoin for example you can also see
that Bitcoin came and re-tested in fact
Bitcoin did exactly what we thought was
gonna happen on Ada because at the time
of us recording the video the market was
trading around this area here but then
boom look at that before coming back
down so this is the scenario that I was
looking at when I was actually trading
Ada however it was actually very
unfortunate let's jump back on Ada here
now you recall that the reason why we
actually play that trade is simply
because of support and resistance as you
can see we had this huge area here of
support and then we have this area here
of resistance as well so that's what
we're looking at these two areas of
support and resistance and you can see
actually here there is a very very big
resistance here on top and for that
reason I strongly believe that the
market was gonna take an opposite
direction not only that but remember at
that time we actually saw a controlling
indicator using this very same technique
that I've taught you on my previous
videos I'll actually link the control
and indicator video at the end of this
video so keep watching now at that time
we saw a huge open interest on Long
position compared to short position and
as I've mentioned on my controlling
indicator you have to do the exact
opposites not only that but we also had
a resistance here packing us here on top
unfortunately it didn't come to touch
our white line here like I said if you
look at metic metic did exactly that
came here it to touch it twice before
dropping back down so I hope you found
this video helpful I'm actually gonna
you know stop recording from here I'll
make a part two of this video because I
still believe that the market is still
gonna drop even further but I will make
a separate video with regards to how to
trade support and resistance and
continue to show you guys live example
placing real trade and if the order
doesn't get triggered just like on this
video you can see the reason why the
order didn't get triggered and what you
have to rectify in the future in this
case what you will have to rectify in
the future is to make sure that we're
trading on a market order because at
that time when the market was trading
exactly around this range here we would
have taken the trade and actually took
that nice profit here of about let's see
how many percentages that and that's
just about five percent so again you'll
be making 50 of your initial margin or
your initial collateral if you're
trading with 10x leverage so that is how
you trade with support and resistance
and again I'm not only using support and
resistance but I'm using also
sentimental trading and looking at you
know other indicators such as
controlling indicator as mentioned in
our previous videos but now I'll link
the controlling indicator video here on
the screen and see how I analyze the
markets using these various trading
strategies again if you want to trade
alongside with me and join our free
Discord group you can actually do that
by signing up using our affiliate Link
in the description of this video then
you'll use a uid to enter that on our
website which will give you a one-time
access to our Discord so
we do that because on Discord we're
actually sharing daily trading
strategies such as this one and also
trading signals so that you can start
you know making profits immediately my
name is bossy designer go ahead and
check the video coming up next I will
see you there goodbye for now peace
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