The document discusses the concept of support and resistance levels in trading, emphasizing that these levels are derived from previous market activity and can vary in strength. It highlights the importance of context and market conditions when identifying these levels and cautions traders about false breakouts. Ultimately, the document advocates for a nuanced approach to trading based on the reaction of price at these reference points, rather than rigid adherence to predefined levels.

2. "There's no such thing
as support and
resistance levels"

3. "support is a level or area on the
chart under the market where
buying interest is sufficiently strong
to overcome selling pressure”

5. Many traders view levels as
support and resistance
turning points where they
can take trades and define
their level of risk.

6. You identify a price or
price zone that has
historically supported
price

7. You believe the market
will move higher from
this area

8. You go long at this
zone and place your
stop below the zone.

9. It’s not the best way.

10. Every Moment Is
Unique In The
Market

11. Hindsight is
20/20

12. Are the same traders
who turned the market
before going to be
there again?

13. Are the same market
conditions present?

14. Is the context the
same?

15. I'm not talking about
mathematically
generated levels

17. Where actual trading
activity has previously
entered the market….

18. These levels can be
weak just as they can
be strong.

19. So what any level is in
reality is a reference to
previous trading activity.

20. Turn from them
Break them
Push through them

22. Let's take a look at trend
lines and the main issue
with using them

26. How To Draw Support
And Resistance Lines

27. Turn off your
candlesticks or bars on
your charts

28. Start drawing random
horizontal lines

29. Turn your candlesticks
back on

30. If random lines
seemingly reject price,
how will you make
sure your lines are
valid?

31. "Usually, a support level is
identified beforehand by a previous
reaction low," and "a resistance
level is identified by a previous
peak" (Murphy 1986)

32. Uptrend=higher highs and higher
Downtrend=lower highs and lower lows
Market in a range will produce both

38. This is a simple and
objective method to
identify your support
and resistance zones

39. Don’t get too caught
up in exact price
points with your lines.

40. How A Market Reacts
To Support And
Resistance Matters

45. Using this context to
support you, there was
$$ to be made given
the context.

46. It's not hard to see
why traders can be
convinced at their
unconditional validity

47. Support And
Resistance Zones
Must Eventually Break

50. These make prime
areas for an influx of
order flow as these
orders are triggered

52. Context
Confluence
Trading Activity

53. Since we understand
that all support and
resistance levels can
break, how do we take
a trade from the level?

54. Market Reference
Points

55. Seeing how price
reacts to this points
can be just as valuable

64. False Breakouts Of
Zones Are Common

68. Is this the sign of a
successful breakout?

71. False breakouts of
support and resistance
tell a story

72. The general rule is
not to short into
support or buy into
resistance

73. That's a rule that may
be ignored

79. This is a prime location
to enter the trade!

80. Price action has shown
the bears are the ones
holding the cards

81. STOP

82. You are positioned
Before stops triggered
Before breakout traders

84. Support and resistance zones
will either hold or break
That's it

85. You expect pullbacks
to the breakout zone
to be weak

86. Trading support and
resistance is a viable part
of a trading strategy

87. Crack open your charts
and staring perfecting
your use of support and
resistance trading