Support & Resistance – PROBLEMS & RULES!

Support & Resistance – PROBLEMS & RULES!

OFFICIAL WEBSITE: IncomeMentorBox.com

Many traders out there assume that support and resistance trading is totally foolproof and will always lead to profits, which is of course not always the case. There are some support and resistance problems, issues, rules, and tips that you always need to keep in mind. Let’s go over these right now!

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Price Does Not Always Bounce For Support & Resistance Lines As Expected

Perhaps one of the biggest problems, and one of the most important things that you need to keep in mind about support and resistance trading is that prices do not always react as you would expect. Sure, support and resistance can be a great indicator tool for placing Forex and other trades. However, it is not totally fool proof, and sometimes the price does not react the way we would like, or would expect in terms of the lines on your charts.

 

https://www.youtube.com/watch?v=Hg1D8_g6h8c

 

Prices Can Bounce A Couple Ticks Before The S&R Level

One thing that can happen here is that the market can bounce with a counter rotation of quite a sufficient size. The market can continue up with a reasonable bounce or it can continue moving lower, but can also continue to move back and forth by a certain number of ticks when it does. There is a lot that is possible at this point and making premature assumptions with support and resistance can quickly lead to your downfall. You should always wait for a full market rotation when you see this occurring.

A Price Can Slice Straight Through The Support and Resistance Level

If a price happens to slice through a support or resistance level, there is really no telling what it can do. For instance, if the value of an asset goes right through a resistance level, instead of bouncing back from it as we would expect, there is really no telling where the next bounce will be. You need to be able to identify the common size of the rotation.

A Price May Breach a Support and Resistance Level And Bounce In The Original Direction

The normal way of trading support and resistance, while it does often work just fine, is not always 100% accurate. A price of an asset can often slice right through an area without the level of interest being invalidated. In other words, the prices can suffer from very random movements, and this can be a problem when using this trading method. For this, you need to set your stop loss levels to account for a certain degree of price movement randomness.

Historical Or Recent Support And Resistance?

Something else that you need to keep in mind is that your trading results will differ depending on if you are using historical averages or recent averages. Often, you will see S&R levels based on history, often several months or years, that worked fine for a very long time. However, then all of a sudden, the price stopped respecting these historical S&R lines, and just starts doing its own thing.

For this reason, it is very important to always update your support and resistance lines with recent information. You need to update your S&R levels each week in order to get the most accurate readings possible. You cannot just keep using the same historical averages over and over again. If the market stops respecting historical support and resistance levels, you have a big problem, and therefore updates need to be done. At the same time, remove older support and resistance levels so you do not get confused when conducting your analysis.

Body & Wicks

When it comes down to it, most traders out there use wicks and the extremes of candlesticks in order to draw support and resistance levels. However, what you also need to keep in mind here is that candle bodies themselves represent closing times on daily, weekly, and a monthly basis, and using these to draw support and resistance lines can help you better understand price movements.

When you are engaging in top-down market analysis, it is a good idea to start on a higher time frame and then slowly work your way down to the narrower time frames. When you are on the higher time frames, draw your levels using the bodies of the candles which indicate major swing points. Once you start moving down to lower time frames, you can adjust and fine tune your levels, which allows you to explain price action in the past with highly optimised levels. Always remain consistent in this approach.

One Or Multiple Touches For Support & Resistance?

Something else that you have to keep in mind when support and resistance trading is how many touches to your levels indicate price strength. More often than not, when trading with this method, traders will assume that the more touches a price has on a certain level, the stronger it is. However, this is not always the case and by all means, it can be a very false assumption to make. This is known as conventional wisdom, which can often be wrong when making generalized assumptions.

When trading support and resistance, all you really usually need is one previous swing low or high. When you have meaningful swing highs or lows, they will often turn into future support and resistance levels. Yet, when a price comes back to the same level a third time, it usually doesn’t hold too well anymore and it can become difficult to gauge price action. It goes against common sense, but a rule of thumb here is that the more obvious something seems on your chart, the harder it actually is to profit from it.

Support & Resistance – Final Thoughts

As you can see, S&R trading is not quite as straightforward as you might have thought at first. However, if you keep these rules, problems, and tips in mind, it should help make your life quite a bit easier. Of course, here at the Income Mentor Box Day Trading Academy, we have many support and resistance trading lessons so you can perfect this method. Join our academy today if you want to learn to trade using support and resistance the right way.

Income Mentor Box support and resistance Trading Lessons

Fast Short Term Profits With Indices

Fast Short Term Profits With Indices

OFFICIAL WEBSITE: IncomeMentorBox.com

Here at the Income Mentor Box Day Trading Academy, we know that people want to make fast and easy short term profits. After all, there really is nothing better than making a pile of money in a limited amount of time. However, of course, this is a bit easier said than done, and as a newbie, you might not know how to achieve these short term profits.

Well, this is what we are here for today, to teach you how to make fast short term profits. Specifically, today we are here to help you make fast short term profits through indices trading. We are going to tell you about the best indices to trade with, as well as how to find the best indices for short term profits. Let’s learn, trade, and profit!

 

Income Mentor Box Short Term Profits

Favorite Securities & Indices For Short Term Profits

When it comes to making good short term profits, you do need to have the right securities, indices, and indices to trade with. Today, Andrew and the Income Mentor Box Day Trading Academy wants to teach you how to make great short term profits using indices. The first thing that you need to do is find the right and best indices to trade with. As an experienced day trader, Andrew knows some of the best securities and indices to choose for trading.

For example, as he notes in the video which we have included here, one of his favorite indices to trade with is DAX. As you can see in the video, Andrew just placed a DAX indices trade, and it turned out to be quite profitable. Generally speaking, DAX is a great option to trade with if you want to make quick short term profits. In terms of short term profits, Andrew made over 350 Euros in pure profits with this specific DAX trade. There are some other really good indices to trade with, ones that are usually quite volatile. These include indices such as S&P, Dow Jones, FTSE, and NASDAQ.

Please do keep in mind that here we have really only scratched the surface in terms of making great short term profits with indices. If you want a full lesson on this subject, please join our Income Mentor Box Day Trading Academy for a more comprehensive lesson. It’s a low onetime payment of $299, and you will gain access to all course materials including over 50 video tutorials on day trading, including ones such as this short term profits indices lesson.

 

 

How To Find The Best Trades For Short Term Profits

When it comes to trading indices, of course, you have to be able to find the right securities to trade with. Then, the question becomes how do we find the best indices to trade with to achieve great short term profits? Well, as Andrew of Income Mentor Box Day Trading Academy notes in this video, one of the best ways to find the right securities to trade with is by going to tradingview.com. This website is completely free to use, which is nice.

To find indices for short momentum trades and short term profits, go to “markets” and go to the indices section. Keep in mind that tradingview.com offers all kinds of asset types to analyze. One of the reason why using indices is great for generating short term profits, is because many of them are highly volatile, and therefore offer great short term profits opportunities.

Anyway, when looking at the indices on tradingview.com, you can rate them from strong buy and strong sell. In other words, if the website lists DAX as strong sell, you know that it is a surefire way to make short term profits by selling DAX. This is exactly what Andrew did in order to make big profits the other day. Most brokers will all have DAX, so this should not be a problem for you.

Keep in mind that in order to find the best indices trades, Andrew will use support and resistance, usually in combination with 5 minute charts. Ideally, before you hit the buy or sell button, for short term profits, you should always look at the 1 minute chart as well.  It’s a great way to find the best trades to make. On a side note, here at the Income Mentor Box Day Trading Academy, we have a great video tutorial on support and resistance trading. Once again, for full and comprehensive lessons on this matter, there is no better place to learn than through our Income Mentor Box Trading Academy.

Fast Short Term Profits DAX Trade

 

Income Mentor Box – Free Copy Signals & Giveaway!

There is also another great way in which you can make short term profits through our Income Mentor Box Day Trading Academy. Here we offer a free signals provision service. If you join our academy, you will gain access to our Facebook page where we post around 12 trading signals per day. If you want to make short term profits, these are trades you want to place.

https://www.youtube.com/watch?v=xVsTy7Z8R7s&t=2s

We provide indices, stocks, CFD, and Forex signals to trade with. Moreover, trading using our signals could really not be any easier. The signals we provide come complete with entry prices, take profit levels, and stop loss levels too. All you have to do to make short term profits is to copy and paste these signals into your own trading platform as they appear. It really does not get any easier than that.

Furthermore, when it comes to short term profits, it really does not get any easier than enrolling in our Income Mentor Box Day Trading Academy free giveaway. Every single month, we do a $500 giveaway where 5 lucky winners get $500. We do this every single month, and every month there are 3 lucky winners. Now, this might not qualify as short terms profits through trading, but it certainly is free money that you can put in the bank.

https://www.youtube.com/watch?v=JOPSn6QyAHQ&t=4s

Income Mentor Box Short Term Profits – Final Thoughts

As you can see, making fast short term profits through indices trading really is not that hard, as long as you know what you are doing. If you want to become a professional day trader and trade indices like a pro, our Income Mentor Box Day Trading Academy is hands down the best place to perfect your skills.

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