$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.

Outlines

00:00

📈 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.

05:01

📊 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.

10:01

🚀 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.

15:03

🔄 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.

Keywords

💡Support

Support in the context of trading refers to a price level where the asset has historically found a base and bounced off, indicating buying interest. It is a key concept in the video as the presenter uses it to identify potential areas to go long. For example, the script mentions a 'key level of support' where the market has bounced off multiple times, suggesting a strong buying presence.

💡Resistance

Resistance is the opposite of support and represents a price level where selling pressure is anticipated to be strong, potentially causing the price to reverse. The video discusses resistance as a critical factor in determining when to go short. The presenter identifies 'huge resistance' levels on the chart where the market has been rejected, indicating potential selling opportunities.

💡Long Position

A long position signifies that a trader expects the price of an asset to rise and thus buys it with the expectation of selling at a higher price later. The video mentions going long when the market touches support levels, as it is believed to be a bullish signal.

💡Short Position

A short position is taken when a trader expects the price of an asset to decrease and thus sells it with the intention of buying it back at a lower price. The video's main theme involves taking a short position based on the market's reaction to resistance levels and a leading indicator.

💡Horizontal Array

In the script, the term 'horizontal array' likely refers to drawing horizontal lines on a chart to identify levels of support and resistance. This visual tool helps traders to spot key price levels where the market has historically reacted.

💡Time Frame

Time frame in trading denotes the period over which a trader analyzes data on a chart. The video mentions using different time frames such as four-hour, daily, and one-hour charts to identify support and resistance levels, emphasizing the importance of time frame selection for trading decisions.

💡Controlling Indicator

The controlling indicator, as discussed in the video, is a leading indicator that the presenter uses to make trading decisions. It is based on the concept of going against the majority, as when there is a significant discrepancy between long and short positions, the presenter suggests taking the opposite trade.

💡Open Interest

Open interest refers to the total number of open contracts in a market. In the video, the presenter uses the term to highlight a situation where there is a high open interest in long positions compared to short positions, indicating a potential market sentiment that could be exploited for trading.

💡Limit Order

A limit order is an order to buy or sell an asset at a specific price or better. The video discusses placing a limit order to short the market at a certain resistance level, demonstrating a strategy to enter a trade only at a desired price point.

💡Head and Shoulders

Head and Shoulders is a technical chart pattern that signals a reversal from a bullish trend to a bearish trend. The presenter mentions a potential Head and Shoulders pattern as a reason for considering a short position, indicating a belief in an impending price drop.

💡Sentimental Trading

Sentimental trading involves making decisions based on the overall market sentiment rather than on fundamental analysis. The video references using sentiment, such as the majority of traders going long, as a reason to take a contrary position, which is a form of sentimental analysis.

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