When the Levels and Zones (our Support and Resistance indicator) shows Two Resistance Levels, you should pay closer attention.
Why?
Because it’s rather frequent that a very good trading opportunity forms below the Two Resistance Levels.
Understanding why is very simple!
The Two Resistance Levels play a big role in pushing the price lower and lower.
In today’s live trade we use two additional indicators that are considered among the best TradingView indicators.
In particular, in addition to the Levels and Zones, we’re using the Breakout Pivotal Bars and the Sentiment Index.
Trade setup – 14 Jun 2019
The price action is forming a potentially great setup because the price made a first impulse down, and then it is forming a very nice consolidation which is usually the indication of a second impulse down.
If that’s not all, the consolidation is sitting below not one but two major resistance levels that are definitely putting a lot of downward pressure.
Of course, the setup must first complete and get confirmed by our TradingView indicators. Because of this, we cannot open the trade yet.
Trade update – 14 Jun 2019
The setup has now totally formed and it is definitely a valid setup because:
-
- The Breakout Pivotal Bars broke down the consolidation that we identified
- The breakdown candle is red (colored by the Breakout Pivotal Bars)
- The Sentiment Index broke down its trendline as well
The three conditions put together signal a very strong downward pressure a so we should expect a second impulse, at least, of the same size as the previous one.
That’s our target.
Trade update – 14 Jun 2019
The price is falling nicely and so we move the stop loss to breakeven so that we’re now in a risk-free trade.
Trade closed – 14 Jun 2019
Within a few hours, we already reached the target, strongly helped by the two major resistance levels at the top which put significant downward pressure on the price.
Our technical analysis was correct because ultimately the price moved lower quite rapidly and hit our target for a 2.4x return.
One thing is for sure.
We have probably the Best Support and Resistance indicator.
Moreover, by exploiting its reliability, we were able to develop a very profitable Support and Resistance strategy for the long-term.
Do you usually exploit Support and Resistance levels in your trading strategy?
Or maybe you prefer trading very long trends, like this one?
Feel free to share your approach to trading by leaving your comment on the YouTube video above!
