hey hey what's up my friend so have a look at this chart over here and let me ask you do you think the price will reverse higher from support or will the price break down I'll give you five seconds to think about this 205 okay let's have a look at another example what about this one so notice how the price comes into support do you think it's going to reverse up higher or will the market or the price break down lower let me give you 10 seconds Okay so to know whether the price is likely to break out of support or will it reverse from support right you must first understand the two types of move right the two types of moves right when the price approach support of resistance okay the first move that I want you to learn is what I call a power move so a power move into support is where you notice a series of you know big bearish rate candles coming into support so let me give you a quick illustration so let's say Market is in a Range it goes up comes down goes up comes down goes up and then it starts coming down right this is a big red candle right let's you know bold this this is another big red candle right coming into this area of support so this is what we call a power move I'll share with you a chart example later on so you can understand it better but in the meantime right a power move into resistance is just the inverses where you see a series of big green candles approaching resistance so why is the power move significant okay so we'll get to that right but first this is how it looks like so this is what I call a power move notice the big red candles approaching this area of support so why is this significant right for a few reasons number one imagine that someone who is uh short right at this candle or at this area of resistance the market in a few moments quickly went in their favor so they're already sitting in profits maybe a thousand dollars two thousand dollars so what happens is that this group of Traders are they will fear fear of giving giving back their profits right have you ever remember you know you hold on to a trade so long you watch your profits from a thousand dollars you know trickle down to 800 to 700 you continue holding until you hit your stop loss right you've got nothing out of it so there's this fear of giving back their profit so traders who are short right they have this fear of giving back their profit so this is why they will look to take profits and that right would help induce buying pressure so when you are short and you exit the position it's actually a buy order a buy order would create buying pressure to push the price up higher the second reason why right uh a power move into support is significant is because it's coming into this obvious area of support right and Traders who you know use technical analysis oh the prices at support right now let's buy guess what that induces buying pressure as well and the third point is very important pay attention it's this whenever you see a strong power move coming into an area of value like you know support resistance Etc the reversal can be just as Swift right towards the upside why is that it's because pay attention it's because there is no obstacle in the way or rather the obstacle right is quite far away okay so if you think about this let's say someone were to buy at this area of support okay let's say he buy here and ask yourself right if you understand Market structure price structure where is the next area of resistance it's actually somewhere here so you can see that from here all the way up to here this is your potential profit so you can see that your next obstacle is actually actually quite far away so there's no like obstacle in the way you know having to induce selling pressure to push the price down lower so because obstacle is pretty far away over here so this is why when you see a power move into support right uh there are times right where the reversal could be just as Swift right towards the upside so here's another example of a power move into resistance so again the concept is the same the only difference is that you know now it's just a power move into resistance you're seeing a c a series of green candles into resistance now one thing to be clear is that I don't just trade every Power move coming to support and resistance because they're not you know not all of them will reverse so later on I'll share with you how to actually trade power move in fact I'll teach you a relatively simple but powerful support and resistance trading strategy so you can profit in blue and bad markets okay moving on I want to share with you the second type of move the crawler move right so what is this so when you see a crawler move into support is where you get a series of lower highs into support it looks something like this so let's say this is an area of support Market goes up comes down goes up comes down goes up comes down goes up comes down and each each one rarely you notice that it gets weaker and weaker regard because the the upside right gets shorter and shorter and if you look from left to right notice a series of lower highs lower highs lower highs so this is what we mean by lower highs into support a crawler move into support likewise if you see a crawler move into resistance you can expect a series of higher lows into resistance so let me give you an example so this is what I call a a crawler move into support right notice this over here how the market right made a series of lower highs lower highs into this area of support so usually when I see a crawler move into support right this to me is a sign of weakness okay or rather this tells me that selling pressure is stepping in why is that and how do I know that because you can see right that the sellers they are willing to sell at this and lower prices so imagine if you are a seller and you're selling close to resistance it doesn't quite make sense right unless you think okay so if support does break then yeah looking back yeah this is a pretty good price to short that but if you don't think so support will break then you know it doesn't quite make sense to shot so near support so clearly the sellers are confident right they're willing to sell at this lower prices because they expect support to break so when you notice a series of lower highs into support more often than not it usually lead to a breakdown and that's not all because naive Traders or new Traders whenever they see oh man Raina look the price is coming to support guess what they'll buy and where would they put their stop loss they put their stop loss just below the lows of support below the loaves of support right so if enough new Traders do that and enough stop loss right it's below this area of support right this again right add fuel to the fire because if you think about this someone who is long their stop loss right is in essence a short order right to get out of their losing trade so if the price goes down and hit their stop loss which is a short on the debt feels even more selling pressure right causing the price to hit down lower so for this few reasons which I shared with you right this crawler move right a series of lower highs into support right is usually a sign of weakness or rather uh sign that you know that sellers are about to drive the price lower on the other hand right if you see a series of higher lows into resistance so you can see over here a series of you know higher low higher low high low high yeah low I had to do that right a series of higher low into resistance is a sign of strength okay so why is that again the inverse is true because you can see that the buyers they're willing initially they bought over here they push the price up higher Market makes a pullback they buy this lows it goes up higher pull back by this lows then it goes up higher make another pullback by this low so you can see that each subsequent lower is higher than the one before so if you think about this right who in the right frame of mind wants to buy just in front of resistance unless you are fairly considered that hey you know resistance will break they know the price is likely to break out higher so this tells you that you know buying pressure is stepping in right I think they believe that they are relatively confident hey the market is about to break out higher so that's why they're willing to buy at this higher prices and more often than not right when you see a series of higher lows coming into resistance the market is likely to break out now let's do a super quick recap number one the market could reverse after a power move into support or resistance right as I've explained why earlier however we don't trade every Power move or trade the reversal right just because a power move come into support there's a one or two other things that I still look out for and I'll explain to you what it is right before I trade a power move and likewise right uh or not moving on right the market could also break up after a crawler move into support or resistance in other words a series of fire lows into resistance or a series of lower highs into support now moving on I want to share with you uh using these two concepts you've learned right I want to share with you a couple of trading strategies that I use right to profit in Bull and Bear market so let's get to it now let's have a look at another example shall we so again the May formula I'll just do a quick recap here in case you know some of you have short-term memory like me m a e what is the market structure that you're seeing on this chart over here this is the New Zealand Canadian the four hour time frame what is the market structure downtrend right great right Market is in a downtrend so you know that the market is in a downtrend where will you look right to trade from where is the area of value that you want to pay attention to in this case a real value is at resistance fantastic right so let's cover this first two so in the market is in the downtrend area a value I'll probably highlight this one over here okay there's probably the key one they'll pay attention to and let me just change this to Black right so we don't get confused later on with our entries and exit okay and again for those of you who prefer to have it drawn as a rectangle you can you probably look something like this right as an area on your chart right that's perfectly fine so all that's left to do or rather the next thing to do is to wait for the market to come towards your area of value or in this case resistance so you can see the market hit up into resistance okay breaks into resistance at this point and this candle over here we have a valid entry trigger this is what we actually call a bearish engulfing pattern this the story behind it is similar to a shooting star pattern right where the the bias were initially in control and then they quickly write code uh disrupted and the market got pushed down lower by the seller closing below resistance also actually you can see it's actually actually a false break as well the market actually took out this highs and quickly reverse back in to below resistance this looks like number one but anyway yeah so this is a valid entry trigger to go long telling you that the sellers are in control so what you can do is again to enter on the next candle open so again uh the next candle open at this price point let's put this as green right to 6 near to signify that is our entry point okay I know this is quite a few black lines over here I'm going to remove some of them so you can see better okay now what about our stop loss so in this case again you can pull out the ATR indicator the average true range indicator I'll just do this one more time so what we are trying to do over here is to set our stop loss a distance away from the resistance because we want to get stopped up prematurely so what you'll do is again find out what is the high over here and add on right by this number of uh ATR value in this case is about 45 Pips so let's do a quick calculation the high of this candle currently it shows that it's about uh let's see seven eight eight five okay so 7885 you plus 45 Pips right that gives you 7930 so your stop loss will be placed at 0.7930 so I'll change this to rate okay and 0.7930 got it okay so that is your stop loss level all right this over here is your stop loss so basically how you interpret that stop loss level is that from this high one ATR okay get on one ATR is equals to this level that you're seeing on the chart over here next thing right where is your target so if you look at Target right there are two levels that showing up over here one is this recent swing low and this one is more of an extreme further away right the swing low so in this case usually I like to have a first a conservative Target over here so in this case you can actually have your trade right all exit at this swing low there's a perfectly you know valid uh thought process okay but at the same time right let me just remove the indicator at the same time some of you might be thinking but right now if you look at this market right if you look back this Market is actually in the downtrend right now and the price tends to break below this low break below this low break below this low because you look at this the price over here it breaks below this low and then it makes a pullback so won't we like you know be giving up some potential profits because we can still look to capture this additional bit of the move right as the market breaks down lower lower right so that's a fair thought right so actually what you can do in this case is actually to have two Targets one is a more conservative Target and one is a further Target so let me share with you how to do this so in this case your first Target can be over here okay this is your first Target let me just change this to Blue let's call this target one right tp1 okay and you can have a second further Target right as you know the market is in a downtrend it could break below the lows and go a little bit further so in this case this is the extreme low over here for all you know this Market could possibly you know break below this extreme low right and then make a pullback so you want to kind of like take your somewhere about here right where you can get the most bang of for your buck well how do you do this all right so how can you do this objectively so what you can do is you can use a tool right called a Fibonacci extension right and look to uh exit right at a just before the 127 extension so I'll just get out show you what I mean look at Trend based flip extension click on this you draw it from the swing High to the swing low and back up high again swing this is the swing High down to this extreme low and then up higher again okay so once you do that you can see that over here I can see over here other over here I'll just manipulate this chart a little bit okay you can see over here I want you to pay attention to this level over here this is what we call the 127 extension and over here is an objective way where you can look to set your second target so I'll just draw a second blue line over here just before the 127 extension maybe somewhere about here okay so let's see what happens next right so in this case right uh I'll just remove the feedback extension since it looks a bit messy but at least you know you know how this second blue line come about we actually use the Fibonacci extension to kind of like project right where the price could go right so we can just take advantage of that extra little Pips right as the market breaks down lower so what I mean by this is that example this is a swing low Market break this Swing Low by quite a little bit before it makes a pullback so the question is where exactly right do you take profits right as the market breaks down lower so this Fibonacci extension gives you that a little bit of objectivity to it okay so I'm just going to remove this extension first and see what happens so in this case the market you can see that it pretty much went lower over here and hit our first Target relatively quickly Market continue down lower over here almost reaching our Target here and didn't quite and now it's making a pullback and as you can see this is how the market is right now so at this point in time right so what you can do is actually you know your stops really in place your first Target is really taken and your stop loss is already at a logical level it's still over here so what you can do is again leave your stop loss as it is right and let the market either you know hit your this second target or hit your stop loss right because there's really no point you know trying to shift your stop loss right to break even because again there's a good chance you could get your stop loss hit at break even so what many Traders like to do in this case is that they set their stop loss to let's say Break Even they bring their stop loss down to their entry point but to me that's not really very logical because there is no like kind of like barrier right because this is an area of resistance if the market comes up higher and it hits down lower you can see that in this case you will get stopped up on your trade right on the second half of the position and the market eventually hits your Target and you're not in it because you know you got you're given to your fear so usually what I do is that you know my stop loss is really at a logical level I'll leave it as it is my target is uh at this point over here I know I almost got filled on the trade but I didn't quite so I'm just gonna leave my plan as it is either it's going to hit my stop loss or hit my target I already taken partial profits on this first Target over here so even if the second position hit my stop loss hey guess what this overall trade will not really be a loser it probably could be more of a break even trade or a very very tiny loss so at least that's my top process to how I would you know go about handling this trade alrighty let's have a look at another example in fact I'll give you five seconds look at this chart and analyze right where is the potential trading opportunity I'll give you five seconds three four five okay let's get started right so this is actually a weekly time frame dollar against the Indian rupee on the weekly timeframe so I don't usually trade the weekly timeframe but you can see that the strategies I'm sharing with you right can be traded across different time frames so this one over here right notice this is the area of resistance and what do you what price action do you see as the price approach resistance if you say a crawler move into resistance you're right all right so you can see a series of higher lows higher lows coming into this area of resistance so if you ask me right there's a good chance this Market could break out higher so now where exactly do we enter where do we set our stop loss how do we exit the right this trade if it moves in our favor fantastic question so let's get to it so one potential a trading setup that you can consider is to have the market right break and close above resistance so let's say uh let's say I just have this line over here right horizontal line let's put it here in Black let's say if the market area of resistance and it breaks and close above it that will be a valid entry trigger to go long right so you can enter on the next candle open let's say somewhere here is for entry now what about your stop loss so where at this point right would this breakout trade be so-called a failed breakout right there are a couple of ways you can set your stop loss but if you want to be a little bit more aggressive you want to get a tighter risk to reward a rather a more favorable risk to reward on your trade you can set your stop loss right somewhere about here okay around the 82 price point because if you think about this if the market reaches your entry price over here it breaks out and the next few candles it goes back into this uh so-called range you know that the breakout is filled right if not you know it wouldn't have you know come back into this range or you know into back into this ascending triangle pattern if you want to call it right so you can set your stop loss somewhere about here now what about your exits where do you take profits if the market moves in your favor great question right and because if you look at this Market structure of this currency pair you look left it's quite insane it's actually in a multi decade right long-term uptrend I'm just going to zoom out you can see since the 1980s right the dollar against the Indian rupees and bring them few very long-term uptrend so of course I don't expect you to write such a long-term uptrend Because by the time you'll be a grandpa already so what you can do instead is just to write a short-term uptrend and one way to go about it is to actually use the 20 period moving average so you can see this red line over here so what happens is if the market let's say it breaks out the higher okay you go long names goes up higher in your favor then this red line right will naturally the 20 period moving average the 20-week moving average will naturally move up along with it and if it closes below it okay let's say closes below the 20 week moving average then you exit the trade so I'll just take you back a few examples you can see right it has happened a few times over the last few years right so you see for example just illustration purposes yeah okay so if you look at this this let's say we had a breakout over here okay let's say your stop loss is you know within below resistance let's say somewhere here okay and notice uh let's say this is the exit that you have right notice the market at this candle pretty much break and close below the uh 20-week moving average so this is where you exit over here so in other words in this particular example okay cherry pick example dirt as you can see your entry is here e right and your TP is kind of like over here right you'll take profit is over here so you actually did write this kind of like short wave up higher what if right what if right is a bonus section right what if the market doesn't break out in fact it's not consolidate and comes down lower well actually if you've been paying attention earlier there's another potential trading opportunity right let me highlight it to you so let's say okay uh you know that this is an area of support so if the market comes let's say a power move right just learn the power move boom right comes into this area of support guess what are you looking too long or short Market give you three seconds one two three answer is you should look for buying opportunities because you can look for a reversal right up higher and thereby allowing you to capture that one swing up higher into resistance and again with proper uh trade management it's possible right to exit a portion of your trade at this highs and then to let the remaining half right even higher so I don't get into this uh Starfire because it's outside of this scope of this video but what you can look for right for a potential trading opportunity in this case is again very simple I'll just walk you through quickly let's say the market comes into this uh area of support it can look for something as simple like a hammer Candlestick pattern a bullish reversal Candlestick pattern you go along on the next candle open stops the distance below the lows possible Target just before resistance right you know to capture that first Target yeah okay if you have enjoyed this training so far then you will love right this book called price action trading Secrets it's a 142 color pages right trading book where you'll discover price action trading strategies right and you know to help you become a consistently profitable Trader so you learn things like you know how to draw support and resistance identifying you know key reversal Candlestick patterns risk management position sizing breakout trading strategies you know pullback trading strategies and much more so I'll put the link somewhere below this video so you can grab a copy for 1990 right we will ship this book to almost anywhere in the world and 1990 includes your shipping fee as well so that's it that's it right so I'll put the link somewhere below this video grab a copy if you are interested and I will