 good morning everybody can everyone hear my voice let me just turn on the screen sharing here yes okay yes audio and video is good okay great great how is everybody good good good okay just before we begin here how many of you guys are new that's your first time in any of my webinar for any of our webinars at Urban Forex? Raul Smith, Minto, Paolo, Dan okay great great so welcome to the community and you guys will probably notice that this is a really closed community where everybody is tied together and we make sure we look out for everybody as much as we can so again welcome to the community and today what we're going to do is discuss a strategy around support and resistance now last time I touch you guys how we do support and resistance and many of you guys requested okay now it's time for a strategy okay so we're going to discuss that now before we get into the strategy part let me get into a little base recap of support and resistance again and what we're going to do is as we go through all of this this is going to be a one-hour pretty much a one-hour webinar we're gonna split the webinars the first half as a learning experience and the last half as an interaction and we'll keep all the questions to in the middle and towards the end of the webinar okay if there is any audio issues let me know here let me let me reset the audio one more time see if that helps one moment how many of you guys have actually audio issues can you make the candles darker yes I can okay I've reset the audio it should be fine if it's still not fine this is recorded so not too worry there okay for those of you who need a darker charts let me make them dark for you all right great yeah I'm sorry mark but it's recorded so not too worry there now base recap on support and resistance now okay the traditional books when you when you learn support and resistance is they tell you that the area where the market turned around from is your level of support or resistance you know for example here this would be considered your resistance or up here this would be your resistance and this area down here would be your support okay now this is the traditional saying that this is your support this is your resistance okay anything below the current market is called support anything above the current market is called resistance now that's not the way I particularly do it and I've introduced this method to hundreds in fact thousands of people now that you know the way you do support resistance is not that way okay and here's the here's why support and resistance like anything else works with level of strength okay that there is a million support resistance you can technically draw resistance on top of each candle if you want to really get into the nitty-gritty of it and you just go crazy I'm like okay this is resistance this is resistance resistance and sooner or later you become like Einstein you know crazy hairdo so you don't want to do that you don't want to do that you want to understand the level of strength of particular support and resistance level now if you guys want to take notes take notes support and resistance the the best levels consist of three things that's particularly that same particular level that you draw must be a level that has been used as support and it must be a level that has been used as resistance and finally the third thing there must have been a big candle that broke through it at one point these are the three things for support and resistance let me give you an example okay let's take a look sort of into the past let's get you some tips and clues okay now for example we take a look at this area here okay um I'm a Rosie the everything is recorded in case I still okay let me do this let me turn off the VPN see if that makes a difference one moment please give it a second and okay how about now is it better now hopefully okay I'm going to repeat this one more time and we'll see hopefully it's better or not if not just wait for the recording okay the three things for support and resistance information okay the first thing the level that you draw must have been used as support it must have been used as resistance okay and last but not least there must have been a big candle break from this level which indicates this level being strong okay let's go through this example now how are you supposed to draw support and resistance is it just this tip here okay the answer is no support and resistance can range from the body all the way up to the tail okay what is a tail a tail is basically telling you that the market tried to push but it could not closer it came down and closed so if I draw on this particular body at the top of this body do you see any single body coming out of this area no right for two days nonstop not a single body was able to come out of this area it pushed but it wasn't able to close outside of it which means this area has just as much as strength as does as does the tip this is how you create a range you always need a range when you're drawing supremacism it is not the traditional one line method that is taught okay because if I say the support is at 1.2555 your chart 1.2555 is not the same as my chart your brokers numbers are different than mine's okay so you always need a range to get a sense of idea okay our charts might be different but it's not going to be a hundred pips of difference it's going to be a few pips this is why you always need to have a range next thing when you draw this area okay this is your resistance it's above the market so resistance resistance over here we had a big candle break one big candle breaks through this indicates that this level that we drew is a strong level okay this is a strong level that we just broke through okay now we've had resistance big candle breaks here also take a look big candles coming through this area did we have support you know we had resistance let's go back and check did we have support in this area let's go back oh well what do you know take a look at this you see how this entire area of 28 January 29 January gets covered okay covers both of these areas as support so we have support we have resistance and a big candle break oh sorry let's go forward we've had a big candle break as well so this area now indicates now that we've crossed through now even once the market crosses through the traditional method that explains is once you cross a level that level becomes the opposite okay this was resistance it broke through a big candle now it became support okay this because we know this area is strong we're going to be using this area in the near future also and the market tends to respect it not once but twice and on and on and on because you know this level is strong and it's been coming in from the past for quite some time okay now the strategy part everyone understands support and resistance until now everyone with with me so far okay now let's get into the fun part okay we're gonna get into the strategy part when do you draw support and resistance that's the question okay okay yeah I drew support resistance on the past you know yada yada yada I get it how do you know if the market is running that you need to draw a support and resistance level when do you need to do it let's take a look I'll show you how many guys are familiar with divergence divergence hidden divergence you know any other words that are attached to it okay I've also explained it in the previous previous webinar I think okay for those of you who don't know it no problem we'll we'll go into it right now all right now let's take a look for divergence I like to use an indicator called statistics I'm gonna go to insert indicator go down to trend and it's in your list oh sorry go down to oscillators and it's in your list here called stochastic oscillator I click on that I use standard settings which is five three three whatever it is I click okay and this is how it looks on my screen now let me remove let me remove this period separators so in the charts are even more clean okay perfectly clean all you guys see just the charts and the indicator now right now let's go through this now take a look at this thing right here let me show you an example of how a divergence or okay we're gonna use the word opposite in this webinar okay what I'm gonna say opposite is if the price is doing opposite of the statistics that means price is going to change directions okay I'm gonna repeat that one more time if price is doing opposite then what the indicator is doing price will change directions okay so I'm not gonna use the word divergence hidden diversions confluence and all of that nonsense I'm gonna simply use the word opposite okay now let's take a look at these charts now the markets are coming down we create our first low okay I'm gonna mark this low I draw my line saying that okay I have my low right everyone see that this is a peak right here we're gonna do the same thing on our indicator I'm gonna mark the low on the indicator this is the lowest point lowest lowest the market continues to move it moves up and then it starts to go down as it starts to go down we have what we call a breach we've gone below our recent low right we've crossed now is that the same case in our indicator have we crossed below this line at any time no we don't have the breach here since we were going in a downward movement we're gonna connect our bottoms okay when you're going in an upward movement connect your tops when you're going in a downward movement connect your bottoms we're gonna connect our bottoms okay from this is our first breach it was here and we're gonna do the same with our indicator around that time the market was here or so somewhere let's say and you can see that the price is telling you it's in a downtrend while the indicator is telling you it's in an uptrend what we have is opposite when you have opposite market tends to price tends to change directions okay in this particular case price was going down boom price changes and goes up this is just a just an example I'm showing you right now I'm gonna go into one more example and then we'll get into putting this together with support and resistance all right we can actually use this and this let me get you a more clear example there's tons of examples of this there and kind of get you guys the most easy to understand yes I will I will do it on us dollar Japanese yen also could you do it on a US dollar or Japanese yes yes I will okay so let's take a look at this the market comes here creates a high then it goes down okay I'm gonna mark this high right here I'm gonna do the same on my indicator market comes down goes up we have a breach we've gone higher than our previous high not the case in our indicator it's not gone higher than our previous high we have opposite since we were going in an upward movement we're gonna connect our highs at that particular time we only saw this candle we didn't see this candle from here at that point we were around here somewhere opposite right from here to here totally opposite things indicator saying downward movement while price is saying upward movement okay since price is in an upward movement and we have opposite means price is gonna turn around in this particular case price takes a reverse okay everyone understand the concept of opposite or diversion so far okay now let's put this into action I'm gonna remove this line since we already know there's a divergence now or opposite and we see it's clearly at this point we have this information on the timing is actually immediate but I'm mark I'll explain that situation to you now when you have the situation of opposite remember if you're just looking at this information of divergence what happens is you're relying on your indicator which is deadly never rely on your indicator okay now in this particular case the indicator is at this particular moment when this candle actually went up the chances are the indicator didn't cross we don't know if the indicator is gonna go down what if the market actually continues going higher and indicator continues going higher too you would never know that this is a divergence then what you do is you need to at this moment when this happened and you're like hmm there is a possible divergence start drawing mark this area with your line and check is this an area of support and resistance let's check it out let's go into the past and see what is this area if we can get that far let's see should I shrink it more see if that helps maybe four hour charts would help wow okay we don't have any data going further back other than probably the daily charts that's okay this example is gonna be a little bit difficult to explain but let me use an example that we did today earlier for forex watchers people in our conference room what time frame do you draw the line you begin with one hour and you work your way up I'm gonna explain to you guys that thing right now in in our conference room at forex watchers we were looking at the four-hour chart today on euro USD okay this is in fact why I have a trade running now take a look at this I'm gonna remove all these lines I'm gonna zoom in a little bit more take a look at this we have a high here we mark our high we have a high here we mark our high price is going down as it's coming upwards price is coming upwards indicator comes up we have a breach now we have a breach on the indicator but we don't have a breach on our price what we're gonna do is we're gonna draw since we're going upwards we're gonna draw our tops from here to at that point was here we're gonna do the same with our tops here from here to this area does that look like opposite to you okay this indicates price is possibly gonna reverse and turn around in the direction it's going the direction it was going was long and we wanted to say we have a short when the short is coming up that's the million dollar question that's the reason why we implement support resistance so I draw my line here first and I'm like okay what can I know about this area okay yes George in a downward movement you draw the bottom see you see how price is moving upwards here as price is moving upwards you draw the tops if the last immediate trend if it's moving downwards you drew you draw the bottoms does that make sense okay well we'll do more examples don't worry all right now so I draw my line here as I see this potential diverges because I don't know that the stochastics is gonna cross or not I don't know if it's gonna do that all I know all all I can assume is maybe the market continues going long and then it's no longer a opposite you know so I draw my line here I'm like what is so significant about this area and then I check okay so I draw my range right I take this area maybe I take the tail also and I start refining by looking in the past I go back and I'm like okay we have a big candle coming out of here we have a big candle coming out of here we have resistance let's take it a little bit lower so we can cover the bodies okay we have resistance we have support let's go further back ah okay so we have support again we have a big candle break again okay interesting let's go further back we're going we're going where are we gonna end up okay now the next question you guys are gonna ask me how far do you look back you know I get this question a lot it's up to you until it takes you to satisfy yourself okay big candle breaches here big candle breach here markets halt right here markets halt above or below but during this period you have big candle breaks remember a big candle breach indicates a strong level has been broken okay let's go further back if you want okay take a look at this complete support we're going all the way to 16th of November yeah until three rules are done when you have three rules you're good you know we you have support you have resistance you have a big candle break and you're up in 28th November so this level has been holding all the way back from last year you know it's not it's not really magic but you know that's it so you come back down to the current current area and you're like okay this is my area I want to sell from so we took a sell and the markets are now headed short everyone with me so far everyone understand this concept okay so now always remember one thing when you're doing this on certain currency pairs try to do them on all all three time frames when I say all three time frames is if you're a 15 minute guy do it 15 30 and one hour if you're a one hour person do it one hour four hours and daily okay in this particular case the four hours says short as per the divergence or opposite we take a look at let's take a look at the daily okay do we have any sort of information on the daily Vadi villain you can check out the video again maybe that will help you if you watch it a couple of times okay markets are going down if we draw down trend here and we draw down trend here it's the same right our indicator and information is saying the same thing okay so basically our daily chart has nothing confusing our four hour charts have opposite information our one hour charts currently has nothing but take a look at this we have a bottom here right um Kumar one hour and above is my preference we have a bottom here do you think we might have a possible breach hey it's possible if the indicator goes below this area that means we've gone below our previous low but on price look how far the previous low is how far is that low that's like 46 pips away okay it's already dropped what 45 pips that's another 46 pips for it to drop today seems unlikely if that okay there we go take a look at this next candle just opened right you see this do we have a divergence now or an opposite we have a breach live in front of us everyone see it now okay now what is the next thing we do now that we see this breach what is the next thing that we do check support and resistance very good come is it Kang or come which one I'm sorry if I'm saying it wrong all right so I draw my first line here okay if I'm saying it wrong or just correct me alright I draw my first line here I'm like hmm I wonder what is this area do you think the market is gonna stop here I don't know well let's check we have some resistance we have a big candle break so we have this piece of information what about our support okay so now let me remove this bottom line sorry okay we can refine this a little bit let's bring this a little bit higher here okay and we need to get our bottom area to okay now we're covering a lot of grounds see here hello will now we're covering a lot of grounds you see here we have a big candle break big candles coming out of this area that's okay well you can you can we recording it so not to worry you so you can see a lot of level of resistance here that's covered resistance resistance big count breaks again let's go further back support take a look how well the support's holding this whole time okay are we out by the support a little bit let's move it down a little bit and let's see if this is the this is our little range here okay it looks a little bit more messy like this but I'm gonna move it back to where it was okay this seems to be my ideal spot right Lorax yes this is gonna be on YouTube in the next 30 or so hours it'll be on YouTube and yeah if you're watching this on YouTube please like the video and comment and share your feedbacks okay so we have support we have resistance and not to mention we have a big candle breaks okay this area holds again and again and again in the past in the future not in the future as of yet but this area just keeps holding and breaks by a big area big candle so my initial thought process is this is the area that I'm expecting the markets to go along from does everyone see how I came to this conclusion okay so that means my current short that I have running I'm gonna have to go ahead and close because I'm getting a a mixed piece of sentiments around this area where I don't I don't see the short continuum very long if I look at my four hours you know the four hours is still going short okay it could be another candle or two and if that's the case we need to find another area below it if this area happens to breach but as of right now this area looks like it has a lot of strength because look how much market is contained here okay so that's our immediate reaction now that's that okay we just closed one trade now I think US dollar CAD was it CAD that we had a different scenario take a look at another pair to see if we have any other information let's see US dollar CAD well look at the pound okay let's take a look at pound pound is currently short right this was the last short area this was the last short area the current market is also low so it's on a downward movement so you want to connect your lows from here to here okay but you have the same thing you don't have opposite situation here you have a low to a further low you don't have an opposite scenario okay you need to have an opposite scenario first then the next thing you want to do is you want to make sure you pick the right support and resistance once that happens and the way to do that is to confirm that your support resistance satisfy those three criteria resistance support and a big candle break okay I believe one of you guys said you guys want to do US dollar Japanese yen let's take a look at US dollar Japanese yen let's go down to the one hour let's do I want to do a black chart I think Lisa you wanted it in a little bit darker okay so let's take a look let's insert the indicator there we go do we possibly have a breach happening right now and see we have our high we do the possible high here we have we need a candle to go slightly higher to give us our breach a proper breach that will say it's now saying opposite scenarios let's check the four hours to see what what is a higher time frame telling us okay any indications on the higher time frame we're in a downward movement when you're in a downward movement you connect your lows if you connect your lows you have a higher low and if you do the same thing here you have a higher low nothing really is saying opposite let's check daily to get an idea from a longer term side same scenario the markets are in the uptrend and this one is pretty much sideways or slightly up it doesn't the area you would have to start drawing right to see that which area matches up okay if you draw for example this area as your support resistance you need to check in the past to see does this area hold true in the past you know 14th February 13th February yes big candle break on 15th okay you know big candle breaks over here okay big candle break here okay so so far we have resistance and big candle break we're looking for support and then we have some whipsaw here so chances are this might not be a good area okay it has some strength but not the ideal strength okay so another thing is whenever you're in doubt don't trade yeah that's the rule of thumb whenever in doubt don't trade okay and you can see probably as the candles move your divergence thing will also I mean your indicator will also move as your price moves so it's very important that you make sure that it's a very clear opposite okay when I say clear it needs to stick out to a point where you're like for it not to be clear the price has to move a lot okay same scenario that we had with Euro USD okay alright so now anyone pick a pair we're gonna work on a particular pair that you guys pick we just did pound will Euro yen okay let's take a look at Euro yen and pound yen okay so we'll look at Euro yen and pound yen okay we're gonna start with one hour how do you define a big candle now the big candle has to be more than the average candle for example is this a big camp not sorry alright Hassan is this a big candle okay now the reason why you said no without even looking at the amount of pips is because you're comparing the size to the nearby candles right you do the same thing when you're looking for a big candle you compare the size to the nearby candles and see is it a big candle or not so for example these trades these candles they're all small candles okay this would be considered a big candle this is considered a big candle Abby Naveen I thought price has to move first before indicator moves what makes indicator to move and price lags behind so that divergence forms well Abby you can have advice versa you know when you have the opposite or a divergence scenario you can either have prices lagging or you can have the indicators lagging this is just indicating there is there's a shift in direction coming up it's it's another way of saying the markets oversold or overbought that's it but it's more of like towards a price action technique because you're not really using the indicators original methods of buy and sell okay alright now sorry we were doing Euro yen let's take a look at the current market situations another thing to look at is make sure when you're doing your opposite trading make sure you have at least something that is almost near the over overbought oversold area you know if you're trading from the movements that are within this area chances are that the divergence is going to be weak so try to trade them try to get the divergence as far out as possible the ones that are near the oversold or near the overbought you know if it helps you give a get a better direction okay current market conditions it's going downwards so we want to connect our highs okay our tops if you want to call them it's this way same thing here this way nothing really changes okay moving forward four hours let's take a look tops straight tops down okay not opposite okay make sure you have a clear opposite when you want to do this maybe I see a divergence on Euro pound now okay let's take a look at Euro pound if there is a clear example let's see Euro pound okay let the chart load up one moment oh on the daily chart okay okay well forget the daily chart we have something here also on the one-hour chart take a look at this the markets are in an upward movement markets went long we're going to connect our highs we had our breach when it went long here markets closed draw your line here okay so the daily chart tells you short you know that's the long-term movement long-term movement tells you short I'm sorry the one hour sorry this is the one-hour chart the one-hour chart tells you short let's move on to the four hours let this load up give it a moment sorry there we go okay no specific divergence on on the four hours okay it's an upward movement markets are also going upward on the indicators nothing really fancy there moving out to finally onto the daily chart Pistol is there a setting that can help tell the number of tips to take no this is something you need to understand using support and resistance where is the area for exit can we just look that Euro yen right I'll take a look at Euro yen one more time if you guys want but let this load one moment we'll take a look at pound yen as well sorry so after this we'll look at pound yen and then we'll look back at Euro yen okay now this is loaded now take a look at this okay we had our breach just now on the current candle and in this particular scenario we don't have that situation situation here now the indicator has to go higher than this high for it not to be a opposite or divergence we need to find out what is it about this area that tells you short the one hour telling you short as well so is the daily what is it about this area let's check is there any anything that comes in from the past okay we have some pieces of information let's draw our lines now where is the crime price okay the price is right up there okay so around this price we want to look for an area where does the market start touching okay we see there's a lot of resistance here okay big chunk of mess around this area lots of support and resistance okay so let's really find this okay that we want to monitor in this area you find the best one okay let me let me draw our areas here so you guys can get an idea okay we're gonna scroll back from here and see what is actually contained in this area okay well for one for starters we have this very good area let's go further back use the four-hour chart sorry okay this is the area that we were drawing everything from right we have our top line we have our bottom line we redefine it a little bit more okay there we go now we have a little bit strict containment of price and markets remember these big candles breaking through that's fine big candles are welcome okay but we have the certain amount of market being contained here so this is the area where we're possibly seeing a turnaround from markets can possibly go short somewhere around here turn around and go along into our next area which is up here where you will see the drop happen on a longer term frame a lot longer time frame which then the drop might come down to probably somewhere around here okay Naveen is there a divergence and proper support resistance done on Swiss franc market let's take a look okay after this one we do pound yen sorry we just take a look at this real quick okay yes we do take a look at this area we have a low we have a breach we have a low we don't have a breach okay since the markets were going down you connect your lows when the breach happened the market was going down so you connect your lows you do the same thing here at that time them indicator should have been here somewhere totally opposite so you're like okay somewhere around here the markets are gonna go along where is your question you start drawing your lines and you start looking back to test it's like where in the world is this area now okay so you take a look at this area like huh okay we have some strong levels of resistance big candle breaks perfect okay can we draw our upper range okay let's draw it let's get this upper range here as well okay now we we're we're defining an area okay let's go further back well what do you know let's go further back boom support and resistance contained okay I'm not making the stuff up it's just natural support and resistance is is simply the way to do it take a look market tends to repeat itself again and again and again you see so this level is clearly a strong level right okay big candles breaking through perfect we want big candles to break through a big candle is a representation that this is a strong level markets contained okay so coming back down to the current price we're like okay around this area is my area to possibly go along okay in the zone as the markets go along here you place your trade to go along and the markets are currently long now at the same time what is the trend of let's take a look at 18th of February the market goes up then down then sideways euro USD 18th of February whereas my oops okay it goes down then up then sideways is it doing the complete opposite thing do we have correlation okay example Swiss Frank usually does everything opposite of euro USD Swiss Frank on 18th of February goes up then down then sideways euro USD it goes down then up then sideways it's doing the exact opposite now having this said if you look at today's market if you look at today's market up sideways down Swiss Frank down sidelined up not to mention our divergences for both strategies occurred at the same time for both currency pair sorry you see that difference you see that change sorry euro USD give you and diversions or opposite telling you short Swiss Frank gave you one at the same time telling you long now you have three levels of confirmation you have your opposite you have your support resistance and you have correlation things are lining up okay and markets are moving the chances are if you probably look at them on a higher time frame these are probably seeing the same thing also take a look at the higher time frame okay markets was going down we have a low here so when you're going downwards mark your lows well let's mark our lows opposite yes okay you draw your zones you contain the market you have your area this is a perfect way to practice your support and resistance whenever you have a diversions or opposite coming up draw your support resistance within days very quickly you will know which area of support resistance is strong by a good trade and a bad trade you'll understand very quickly and you'll start to draw them better and better and better okay so guys repeat going over this thing what are the three things for support and resistance of you know yes you can do that as well okay for example I did this on the four hour I draw these zones right if I go down to the one hour take a look it makes more sense because you're like okay there's a whole bunch of tails coming into this area okay but it's nearby I'm Hasan it's nearby it's close enough which is better confirm the diversions MP or support resistance support resistance obviously MP is an indicator I don't like indicators this is a very powerful thing understanding your levels where the markets will halt because remember forget the traditional methods of doing it you know traditional methods are really outdated you know it's like from the Stone Age the reality is you need to look for these three things a level that's been used with support a level that's been used with resistance and a level that's been broken by a big candle which indicates a strong a strong break out a strong level has been broken the Harami thing living what is that I mean of MP can't work alone and mark so would you then address the final issue of timing the entry okay when you have your divergence the moment you have your divergence you start plotting and looking for your nearby support resistance and you see if that is the ideal area something we did here on your USD what we did was we drew it on the four-hour charts we had our we had our divergence clear divergence and then we started plotting our levels of support resistance so when it said happened we drew our lines were like huh what is this area okay we had clear levels of resistance and clear levels of support and big candle breaks it had everything that we wanted was right here perfect spot for us to take a short which we did which you guys saw you close in front of you candlestick patterns bullish Harami bearish Harami doget oh no no no no I don't they're all pretty much the same thing it's it's it's a headache so yeah it's 8 30 p.m. my time now it's 7 30 a.m. New York City time any last-minute questions I can go through a few more last-minute questions for five more minutes and then we will close the webinar Kilimanjaro what is hidden divergence now there's a difference between hidden and regular divergence you know one is where the price the price is the one that did the breach in this particular case what who did the breach here the indicator went higher than the previous high not the price see and there's one where the indicator does the breach and then the other one is where the price does the breach and not the indicator that's the difference okay and there's other ways where people actually you know if you the price goes lower high but then they draw the bottom you know it is nonsense like that also so just think of them as opposite the moment you have opposite price is going to change directions does this strategy work on gold the statistics and support resistance yes try them out in fact I would like to know and for those of you who like to practice this practice this on sorry let me practice this on our we have a page if you actually go to the groups just click on view all groups and where to go there is support and resistance you can post all your trades here you know we have we have a bunch of people who are going to be responding and you know helping you out with this and we have tons of trades and stuff like that and there as examples so go ahead and use them post your trades will help you out with it in case we do see any errors or anything like that okay yes 533 yeah just standard last question do you hungry yes I am hungry it is my time you know whenever it's time for me to leave the webinar food is my answer you're very welcome guys all right guys it was great to see you all and welcome to all you new members who are who have just joined the community I hope you enjoy the community there's any questions message me personally it's fine use the discussion boards everyone is there to help you out if you need anything I will help you as fast as I can as I get to the emails myself so good luck everybody and I will see you tomorrow we have another webinar for Willie on supplying demand so I will see you many of you guys there tomorrow thanks guys have a good night and thank you I will enjoy the dinner thanks bye now