Lesson 5: Locating Support and Resistance Trend lines
This lesson builds on previous concepts by teaching how to find and connect support and resistance trend lines—a critical skill for identifying high-probability trades.
Key Concepts:
✅ Connecting Trend Lines: Learn how to draw effective trend lines by connecting significant points of price action, such as highs and lows, across different time frames.
✅ SR Flip Concept: Understand how a trend line that acts as resistance can flip into support once it’s broken (or vice versa).
✅ Identifying Confluence Areas: Recognize when trend lines intersect or align with horizontal support/resistance lines, increasing the likelihood of a bounce or rejection.
✅ Price Action Bottlenecks: Spotting areas where price action is funneled into a narrow range before a breakout or breakdown.
✅ Application for Day Traders vs. Long-Term Investors: Learn how to apply trend lines for various trading styles, from day trading to swing trading and long-term investing.
By the end of this lesson, you'll know how to effectively draw and analyze support and resistance trend lines, improving your ability to anticipate price movements.