$50 to $10,000 Binance Future Trading support and resistance Part1

Summary

This 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.