The True Power Of Support & Resistance
Good morning good evening good afternoon. How's everyone doing? Welcome to the webinar today on the importance of Support and Resistance and why it's so powerful. So Support and Resistance, okay i'm going to share my whiteboard here real quick let's go through a couple of things so the first half of the webinar i'm gonna go through some of the basics of support and resistance this is gonna be good for those of you guys who are pretty much brand new the last half of the webinar what i'm gonna do is i'm gonna go through some more of a in-depth talk about support and resistance which is a little bit more experience level okay those of you guys who are new you guys will enjoy this as well and those of you guys who are experienced make sure you know your basics okay okay now along with these two things towards the end those of you guys who are not students i will give you guys a a chance to join Urban Forex and that we'll we'll talk about that towards the end so i got a little surprise for you towards the end about that okay so here we go let's start with some of the basics what is support and resistance you'll see it sometimes listed at listed as S&R or R&S okay mostly it's written this way and not this way support is if something is below you is called support imagine a person holding up something this is called support okay so if your your your prices are here whatever is below you holding it up is support okay whatever is above you is resistance okay so far so good simple enough right now let's go deeper into why is this concept so interesting what do how do people use it and what do they do with it so let's say prices are coming down prices come down they hold a bit they come down they hold a bit they come down they hold a bit they come down so what people like to do is they like to take this line and they draw it across and saying that is my support okay when the support gets crushed like that because support pushed up that means oh this must be a good area someone is supporting this area and pushing it up oh sorry that looks like a bat now okay someone is pushing it up but when that thing breaks and goes down they then say support is now equal to resistance which means this anytime the prices come up this area should push it back away so far so good does that make sense okay so i want to go through these basics a little bit with you guys to to make sure there is no illusion behind support and resistance now here's what what where the problem comes in i want you guys all to start with this concept of i don't know and then we can begin the reason why the reason why we do that is because when we come into the market to learn something especially into a webinar there's this whole notion of i'm in the webinar but i already know this stuff then why join the webinar right that doesn't make any sense you're counterproductive so if you want to join you join with the concept of i don't know show me what you got because i'm curious to see if there's more to learn okay so you gotta sort of drop down the ego a little bit okay because there's many many things that many people will realize oh i didn't know that about the basics so shall we do that all right so here we go i don't know i don't know here we go that's how how learning begins moving it further moving it further what makes a support and resistance good okay so let's say we have support here support here would you say this is a good support it's holding the price right it's holding the price over and over and over and over again it's holding the price now here's a misconception many people have if it's held the price over and over again therefore it's a good support that's wrong it's not a good support it's not a good support how about this okay if price comes to here and responds like that is that a good support that is also wrong that is also wrong and this is why this this webinar is important right this is why this is going to be so important is because many people have a misconception of what the hell is a damn support right what am i supposed to draw okay so let's talk about this i believe now i have your attention all your brainiacs okay so let's go into it a little bit deeper a little bit deeper so far basic stuff so good everyone understands support is the stuff below you all the new people who don't know what what support and resistance is it's very powerful you must know this you must know this if you like to buy let's say you like to buy a car what's a hot car these days you guys tell me i'm not into cars and stuff what's a hot car a Lambo okay all right so okay a lot of you guys are saying Tesla Lambo Ferraris okay let's say this is a Tesla mixed with a Lambo mixed with a Ferrari it's like a supercar okay and Aston Martin all of it together this is like ultra ultra fancy okay now if this if this car is worth one thousand dollars okay can you tell me is this car is it a cheap price or is it expensive or do you not know as of right now if the only thing i've told you it's one thousand dollars we don't know anything we actually don't know anything if the price starts to rise and now the prices have reached two thousand dollars now would you say is the price expensive cheap or normal expensive right okay the reason why you're saying expensive you have something to compare it to now if the store says this is now a bBack Friday deal we are giving away cars for a discounted price and the discounted prices are coming down and they go to 1 500. would you say that's a discount absolutely then the prices drop further
1 200. would you say that's a discount then the prices drop further and now it's at one thousand what do you think the public will do at one thousand they would want to buy because they would remember this as the original price before prices started to rise this is what makes it a support this is what makes it a support so let me ask you the question i asked you earlier when i asked you guys this thing is this a good support many people said yes can you tell me now is this a good support no so the whole myth of the more times it touches a line the more beautiful the line becomes that is correct it is beautiful but has no no value it's useless but it is beautiful it looks nice to draw it's like oh it's like preschool all over again i can connect the dots really beautifully right so far so good so this one from 1000 the price shot up to 2000 therefore it becomes a memory if this is 1000 and price shot up to 1100 that's not going to do much for you that's not going to do much for you people won't run after it to buy right because you're not trading forex you're actually purchasing something you have to understand that if you understand that logic that you're actually buying a good then you will understand that it's nothing than how you normally do shopping it's exactly the same way so far so good all right let's go deeper let's go deeper so this nasty horrible beautiful looking car that we have that is going to be actually it looks like the tesla truck i'm good at drawing i should go join tesla okay anyways moving forward moving forward moving forward okay now if we say prices are here for this car it's a thousand dollars prices go up one thousand one hundred and then prices collapse now this collapse went to fifty dollars do you think people will want to buy it yeah it's a discounted price okay let's say if people start to buy it and the prices don't go up so fast if it goes up fast what do you think happens the discount was only for one or two or three cars not a lot and some people bought it things are back to normal so far so good does that make sense there was only a few pieces some people bought it things are back to normal however if prices go up slowly and now i'm teaching you market dynamics a little bit if prices go up slowly do you think the discount is still around 75 100 the discount is still around but people are starting to buy it more people buy it because it's cheap more people buy it because it's cheap more people buy it because it's cheap more people buy it because it's cheap what happens when you reach approximately this area the memory kicks in the resistance the memory of hey remember last time when the prices were close to one thousand one hundred it went down to fifty dollars bro bro bro bro don't buy it here it's gonna go down it's gonna go down bro don't buy it here it's gonna go down this is why all the buying halts okay that's what makes a resistance a resistance and this is like a fibonacci guy's worst nightmare that's a 100 pullback a fibonacci guy is like losing his shirt he's like oh my god what is happening right okay so let's move this deeper into this only basics for now okay remember the first half we're gonna go only basics how many how many of you guys right here would say it's been 30 minutes or 25 minutes into the webinar i've already learned something we're not about wasting time here we're about you got to learn something before you leave otherwise you're not allowed to leave okay make sense good good let's go further let's go further so this nasty car that's worth a thousand dollars normal price let's go further into it prices are now doing this ready i'm i want you to observe what happens to your emotion okay i'm bringing in one more factor to your how you're supposed to draw your state of the of the movements okay so prices are hanging around one thousand to one thousand one hundred okay it's one thousand one thousand one hundred one thousand one thousand one hundred one thousand one thousand one hundred okay so far no movement right do you feel panicked at all no you're like oh it's okay it's a hundred dollars more or less right so it's like it's not a big deal it's okay okay i can afford to buy that junk all right here we go now prices start to go up 1150 just a little bit just a little bit the resistance that was here is now broken are you saying oh my god i can't wait to buy this do you feel like that therefore this support equals resistance not so valuable not so valuable emotions have not kicked in okay we teach this part a lot in a lot of my webinars about how do you know where the support resistance might come and it generally comes in deeper anyways that's in that's for other webinars but this is tying into a lot of that stuff so far so good so not so important i'll just switch it around just a little bit prices go up to 1500 okay now would you say would you have some kind of a fear in you saying hey man i need to buy it soon if i don't buy it soon i don't know maybe it'll become three thousand maybe it'll become ten thousand my neighbor tom dick and harry they all bought at 1 100 i should have listened to them so now when prices come down around 1 100 what do you think people will do they will buy emotions began support resistance got cemented it got cemented it becomes more natural to buy from the area now not because because this is the same line as we were drawing before but now it's more valid than before does that make sense so what what many people what i like to teach in a very simplistic manner for all the people who want rigid rigid rigid remember i say look at the size of the break look at the size of the range if the break is big then the snr will be close by but now if i take you away from the rigid and i say you know what can you be one with me here one with the universe and understand what just happened so tell me one thing do you understand what just happened to emotions do you now know why this is a good support now there you go there you go this is how you understand what is a good support what is a good resistance you have to do that calculation of got it got it got it you can't just be blind and be like oh all right i'm just gonna do this oh my god so beautiful we should hang this up in the you know the louvre you know we don't want to do that okay makes sense so you want to be away from rigidness and try to understand why it's drawn why it's strong so far so good all right we're gonna go deeper now now that we're reached half of the webinar shall we go deeper and take it into a more in-depth concept Suman you're asking if this is recorded yeah it's recorded let's record it so you can watch it well you'll get the email in the next 48 hours about it and you can watch it as many times as you want but those of you guys were asking about recorded can you at least try to be here and watch it it's more fun when you're here would you guys agree it's more fun to be here live excellent i i prefer you guys who are live too because i can feel the rhythm i can know what you guys like what you guys don't like and i can adjust for you okay so you know thank you for being here live again i always appreciate you guys taking the time all right so let's go further let's go further now let's talk about the concepts about support equals resistance how does a transfer happen okay there's a transfer right because what we just talked about was just support support support support how do we know support can become resistance how does that happen let's talk about that so like earlier we talked about this right 1100 and one thousand prices go up a little bit one thousand let's do it like this let's do it the simple way first boom one thousand seven hundred do people want to buy oh yeah they want to buy right they really want to buy they feel left out any price discount will be bought so when the price comes in the memory kicks in to buy it from here if that buy fails to launch and it comes down and now the price is 500 what do you think happens to the people's emotion wait wait wait i want you to move away from any label you're giving this chart do not draw it do not call it a certain thing i want you to just think about the emotions all of you veterans are gonna label this i don't want you to label this anything i want you to simply say what happened to their brain did it explode they're angry now i thought 1100 was a good deal but now prices went to 500 what the bloody fff right so now if prices are coming back up what do you think those angry people will say to their friends when their friends are like maybe i should buy it at 1 100. they're going to say do not buy it at 1 100. i would not recommend you buying it so if no one buys it up here what will happen to the price if no one buys it from a store what will the store owner have to do with the car he has to drop the price he has no choice this support right has now become resistance not because of a drawing remember that concept not because of a drawing but because of how it happened tell me you understood that otherwise you're in trouble tell me you understood that why did the power transfer from support to resistance is it because i drew a line like that and the price must respect my line it's the memory it's the memory correct good now i'm gonna change it just a little bit very tiny thing ready very tiny thing nothing else changes very tiny thing i'm going to change prices go up to 1 150.
tell me about the emotions of people saying oh my god i gotta buy it i gotta buy it i gotta buy it are they running after it are they lining up around the store yeah like a lot of you guys are saying meh i wish i had emojis on this thing like i don't care you know it's okay it's just there nothing's really happening right now this for many people is gonna be support if this thing goes down tell me now did support become resistance did support become resistance but i'm drawing it correctly good i'm very glad very happy all of you guys are saying no not one yes very very good very happy about this good job do you guys now start to understand why i i should not draw that line good now to mess with the veterans a little bit because we like to mess with veterans too because it's a webinar you know it's for everybody you know it's for beginners and for advanced people shall we go deeper okay when i say mess with veterans i don't mean people who want to war like don't get this wrong like i don't i don't mess with those veterans there's no way let's go in deeper prices are hovering around okay thousand dollars they shoot up one thousand seven hundred dollars okay emotions high would you say is this a good support to draw yeah absolutely right that's a good support to draw if prices come down but slowly slowly slowly and they do this and they do that what now what what just happened now think about it okay now the brain is hijacked right that emotion that was here what do you think happened to that emotion now they're more aggressive like oh my god i can't believe i missed this you'll find this very similar into the bitcoin market very very similar okay now the the the expression of damn it i missed it again okay i didn't buy it here i was hoping to get that same price because i thought the market will come down and give me the same price all the time they didn't give me the same price they went up again now their support becomes here notice how i'm not not drawing the support like somewhere down here like most supply and demand people do supply and demand people will use areas like this i'm not using that area it's here that's the level so far so good okay because now as prices come around this area they will try to buy it especially if it comes down slowly especially if it comes down slowly because it is not a line that is drawn simply the way i just did it has a story that comes with it it has human emotions that carried on with it it is an ongoing evolution of what is happening you cannot just come in today and saying hmm what what can i do here it's it's part of the whole process it's all of it you have to understand all of it okay let me ask you guys this those of you guys were a little bit more advanced a little bit more advanced when i say advanced a little bit more experience like you've been in the industry more than two years how many guys have been here more than two years okay some people saying not me a lot of people saying yes okay those of you guys who are doing been here more than two years there's a chart a charts like this like that this this and then you see that that and then today opens this is today right now here's what i see many experienced people do i want you to stop this immediately including newbies i want you to avoid this trap we come into the market we look at this big red candle and we say oh if i get a pull back i'm going to sell it we ignore everything to the left and saying you know what i'm i'm like a horse i don't see anything else i only see this i can't see anything else because i refuse to see anything else why that can cause you trouble because how do you know if this is part of some emotion or not this has come come from all of this there's some story here where the emotions were flaring up and down up and down up and down how do you know what you're what you're part of only when you have new highs or new lows can you go one track pony one trick pony but if you're in part of a flow that has more story to the left you can't just say look at that big buyer oh man i'm just going to focus here if i can just get a pullback i want to buy don't do that don't do that okay so how many guys here were in the podcast earlier good many of you guys were in the podcast right you guys remember Lucas talking a bit about volume okay so as we want to talk about the advanced stuff a bit let's talk a little bit about volume what does volume have anything to do with support and resistance let's talk about it now but if this goes up and there's a lot of volume here would you say more people bought than the store can sell okay let's say the volume is very standard very standard yeah that is a sign of active buying that is a that that is a sign of active buying okay Lucas keys off of this now compared to before where he used to just draw support and resistance you can see there's a lot more evolution around it so there's active there's there's active buying around these areas right if there's active buying around these areas what do you think people are doing up here so they're they're right now waiting like oh man i wish i can buy this but i'm not going to buy it up there i'm not a a crazy person right many people do that like when it jumps up like let's say the bitcoin now has jumped up many people who didn't get in and they were hearing about it from their friends and stuff but they're like i don't know man i don't know but when it jumps up very few crazy people buy it up in the sky but a lot of people will be like okay you know what okay i believe you now if i get a discount i'll buy it a lot of people are like that if i get a good deal i'll buy it because now they know this is a good deal but if the price of the car that i told you is 1000 and today is ten thousand how do you know if ten thousand is a good deal you don't know ten thousand is a good deal it's just up in the sky so who who buys stuff like that do you go to the supermarket and you say how much for this apple three dollars okay good and you come in the next day how much for this apple oh four thousand dollars and you're like i think it's gonna go to five thousand you know what here's four thousand dollars for the apple like which [ __ ] does that right no one does that in real life no one does that no one does that okay so in trading you want to bring that same logic in stop doing that wait for that deal wait for that deal okay so when the deal comes in they will buy now as the deal comes in and it's starting to pull back if this is not met and it actually starts to turn around and it starts flying that person who was waiting for that deal his panic has increased a little bit more his panic has increased a little bit more which now means if the price slows down into this area he will go more closer to this area because his memory point is this high where the discounts came in and then it broke that high does that make sense that's how resistance now becomes support this is resistance people were expecting maybe this price will give a discount again it didn't it went up so now when it comes down to here they'll be like you never know it's going to go up again man buy it now it's the cheapest price you're going to get it's the logic of is it cheap or not that's how support and resistance is created the illusion and the idea that people put around oh this is a good price this is a good price okay okay i see some of you guys saying aha moment how many guys can say yeah you guys learned something already 15 minutes into the a little bit more advanced side okay just a little bit more okay can i ask you this who would have known support and resistance has so much information it's because we're all trained to look at support and resistance in very childish manner okay when i say childish manner is we're all learned taught to do this and saying oh yeah oh yeah you see it went up next time i'll do the same thing well next time it won't work are you sure why it happens answer the why if you know the why you'll know everything okay Chi Chung exactly why why is important now let me switch it around a little bit i like to change things a little bit you know just so you guys i can see where your brain is getting curious ready here we go thousand dollars thousand one hundred dollars okay so far so good is anyone going crazy no right things are normal okay prices jump up 1700 like before but this time no volume so now it's like huh there's no demand prices went up without demand so no one's buying it and then there's some kind of a resistance here and then the volume starts to show up what do you think that means it doesn't mean sellers are coming in it's panic buyers very good felix panic buyers we need to understand who the hell is buying up there now and why are they buying so much up there okay why are they buying so much up there we want them to succeed if they do not succeed there's a problem up in that area we will never go back up there properly okay if this buy hangs around here if this buy hangs around here and then it pops up and then it pops up would we then say oh genius people i know what they were doing that makes sense interesting right that's us like whoa who's who's buying up there and then when that happens we're like ah that's why they bought up there okay makes sense makes sense so cool so cool now let me ask you this in that design remember in the beginning when i was trying to mess with you guys who have been in the industry a little bit too longer and we said which one is good is this a good support is this a good support now look at this tell me about the resistance is that a good resistance now you put that together with the volume information things the story changes the story changes even if you're at a resistance just because your resistance has touched five or more times three or more times seven or more times i don't know who has all these kind of rules doesn't matter how many times this touch what does it mean to you that is the key if you cannot answer that then you'll be drawing a line endlessly for the rest of your life and getting nowhere sometimes it works you'll make money sometimes it doesn't work you give back your money zero sum game does that make sense now shall we switch it up just a little bit here we go let's switch it up just a little bit let's talk about this one why did i say this is not good isn't that supposed to be good okay all right so i know you guys are you guys have been waiting for this since the beginning and you guys were like all right nevine i sat through the damn webinar i went through the basics just so i can see why is this one not good what are you trying to tell me okay so let's talk about it let's talk about this tell me right now at 1700 what do people want to do what do people want to do they want to buy they can't wait to buy right they want a discounted buy if the discount does this do people still want to buy yeah the context is still for a bye the context is still for a bye so if i put a resistance here i don't care how strong that reaction is the context is still for a bye that will be destroyed so far so good does that make sense so you can't just look at a strong reaction purely based on emotion either it's all of it together that tells you and that's your support and resistance therefore you want to use it so which line is better is the blue line a correct line to draw or is the black line a correct line to draw which one is more accurate the blue or the black the black line very good very good yeah is it starting to click now it's starting to make sense of what makes a good level it's the whole concept around why was a level made to begin with why was a level made to begin with okay so we went through quite a bit of stuff we went in a like a big loop of the importance of support and resistance would you say support and resistance is important now now that you watched it so those of you guys who are new to sport and resistance i hope the last half of the webinar doesn't scare you in fact i wanted to inspire you to be like when you go rigid that's coming next it'll come automatically if it if you've spent two years in the market and that hasn't come that means you're so rigid maybe it's due to cultural aspects or age you're unable to break away from the pattern you must calm down and have an open mind to be like i wonder what this means i wonder where this is leading me to instead of no you must draw it like this that didn't work let me go to the library look at the books ah that's how you do it okay you must do it like this you don't want to be rigid in the markets ever ever all right so all of you guys who are not in Urban Forex i wanted to tell you guys that if you guys would like to join Urban Forex if you like the way i teach then we have a eight-week-long program that i had specifically designed for some premium students back in the day we went through version 1.0 which is very powerful and now we're at version 2.0 which is called the Mastering Price Action 2.0 if you are interested in joining the Mastering Price Action 2.0 it's an eight week long program i take you step by step into what you need to see how you need to approach the markets what you want to do as you saw there's like 70 what 70 percent of the people in the room are actually students so you know people like the stuff there so you have feedback there as well there's a lot of good good stuff to see a lot of good stuff to learn i walk you through in a rigid format but give you the ex give you the idea of how to be unrigid as well so that is the Mastering Price Action 2.0 walking you step by step to start your journey correctly it's not going to be overnight i want to be honest and up front with you right now it's not going to be overnight but if this if everything i've taught you makes sense and it's logical to you then trading can be a career for you but if it's not logical for you then maybe it's not the right path to take so those of you guys who do want to join you can join today for free using a free trial that we have give it a shot go through the first week of lessons understand what i'm trying to say see if things click and you know it will at the very least stop the bleeding get you a little bit profitable and then if you want to take it further we have more advanced programs where we can go even deeper and deeper and deeper and we can talk about how you can make more money from the same trades all right so thank you guys again for being here it's always a pleasure and thank you so much for your time to be here to to to close off if you guys can just let me know did you guys learn something in this webinar yeah excellent excellent great great great it's always a pleasure thank you so much for coming until next time guys cheers bye for now
2021-11-12 19:39
