A detailed guide on how to use stop loss order like a pro even if you have zero trading experience
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[The truth about support and resistance nobody tells you]
If you read most trading textbooks, they’ll tell you that the more times support and resistance are tested, the stronger they become.
But that’s not true, because the more times support and resistance are tested within a short period, the weaker they become.
Here’s why…
Support exists because there’s potential buying pressure around a certain price level.
(This buying pressure could be institutional orders, retail orders, smart money, etc.)
So what happens when the price re-tests support multiple times?
Well, these orders start to fill up.
Eventually, when all these orders are filled up, there’s no one left to buy and that’s when support breaks.
This means the more times support and resistance is tested (especially within a short period), the weaker it becomes.
Why a short period?
Because it’s unlikely new orders will be “replenished” so quickly.
And that’s why the more times support and resistance are tested within a short period, the weaker they become.
If you read most trading textbooks, they’ll tell you that the more times support and resistance are tested, the stronger they become.
But that’s not true, because the more times support and resistance are tested within a short period, the weaker they become.
Here’s why…
Support exists because there’s potential buying pressure around a certain price level.
(This buying pressure could be institutional orders, retail orders, smart money, etc.)
So what happens when the price re-tests support multiple times?
Well, these orders start to fill up.
Eventually, when all these orders are filled up, there’s no one left to buy and that’s when support breaks.
This means the more times support and resistance is tested (especially within a short period), the weaker it becomes.
Why a short period?
Because it’s unlikely new orders will be “replenished” so quickly.
And that’s why the more times support and resistance are tested within a short period, the weaker they become.
Discover a powerful stock trading system that has generated 3225% over the last 22 years.
You’ll learn the exact trading rules so you know when to enter and exit the trades—without second-guessing yourself.
But if you love analyzing financial reports, memorizing chart patterns, and keeping up with the news, please don't sign up. It's for boring traders only.
Learn more: https://www.tradingwithrayner.com/sts/
You’ll learn the exact trading rules so you know when to enter and exit the trades—without second-guessing yourself.
But if you love analyzing financial reports, memorizing chart patterns, and keeping up with the news, please don't sign up. It's for boring traders only.
Learn more: https://www.tradingwithrayner.com/sts/
Professional traders:
Manage risk
Stay humble
Trade with an edge
Continuously improve winning rate
Know they can be wrong
Focus on what they do best
Never let ego get in the way
Know when to stay out of the markets
Manage risk
Stay humble
Trade with an edge
Continuously improve winning rate
Know they can be wrong
Focus on what they do best
Never let ego get in the way
Know when to stay out of the markets
Discover how to trade the Bull Trap pattern and profit from “trapped” traders
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[This is the most important technical level one the chart]
Here are a few reasons why…
Reason #1: Losing traders hoping to get out at breakeven
Multi-year highs represent extreme optimism in the markets because most traders (and investors) are in profits.
But as you know, the price cannot go up forever. Eventually, it has to retrace or reverse altogether.
When that happens, many traders will exit their long trades.
However, not everyone will do the same. Some will continue holding, hoping the price could breakout higher to give them even more profits.
But when the market collapses even lower, they’ll regret not selling earlier as their open profits have been eroded and they are now sitting on their losses. They hope the market could re-test the highs so they can get out of their trades at breakeven.
Reason #2: Bearish traders looking to short the markets
For bearish traders, multi-year highs present an opportunity to short the market at a “high price” because they can reference the highs to set their stop loss.
So as the price approaches multi-year highs, the short interest from bearish traders will increase.
Reason #3: Momentum traders looking to buy breakouts
Momentum traders buy breakouts as the price moves above a certain level. It could be breakouts of a range, swing high, resistance, etc.
But what’s interesting is if the price breaks out of multi-year highs, it’ll attract attention from traders across different timeframes.
That’s because whether you’re a day trader, swing trader, long-term trader, etc. the multi-year highs will be something visible on your timeframe (and charts).
Now, whether you’re bullish or bearish, multi-year high is a significant level for traders.
If you’re bearish, then you can reference it to set your stop loss above the highs.
If you’re bullish, then you can look to buy the breakout and have your stops below the previous multi-year highs (anticipating that it could become previous resistance turned support).
(And vice versa for multi-year low.)
Here are a few reasons why…
Reason #1: Losing traders hoping to get out at breakeven
Multi-year highs represent extreme optimism in the markets because most traders (and investors) are in profits.
But as you know, the price cannot go up forever. Eventually, it has to retrace or reverse altogether.
When that happens, many traders will exit their long trades.
However, not everyone will do the same. Some will continue holding, hoping the price could breakout higher to give them even more profits.
But when the market collapses even lower, they’ll regret not selling earlier as their open profits have been eroded and they are now sitting on their losses. They hope the market could re-test the highs so they can get out of their trades at breakeven.
Reason #2: Bearish traders looking to short the markets
For bearish traders, multi-year highs present an opportunity to short the market at a “high price” because they can reference the highs to set their stop loss.
So as the price approaches multi-year highs, the short interest from bearish traders will increase.
Reason #3: Momentum traders looking to buy breakouts
Momentum traders buy breakouts as the price moves above a certain level. It could be breakouts of a range, swing high, resistance, etc.
But what’s interesting is if the price breaks out of multi-year highs, it’ll attract attention from traders across different timeframes.
That’s because whether you’re a day trader, swing trader, long-term trader, etc. the multi-year highs will be something visible on your timeframe (and charts).
Now, whether you’re bullish or bearish, multi-year high is a significant level for traders.
If you’re bearish, then you can reference it to set your stop loss above the highs.
If you’re bullish, then you can look to buy the breakout and have your stops below the previous multi-year highs (anticipating that it could become previous resistance turned support).
(And vice versa for multi-year low.)
A detailed guide on how to use the 200-day moving average so you can better time your entries, improve your winning rate, and ride massive trends
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The Trading Success Formula
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No market trends all the time.
No range sustains all the time.
No strategy works all the time.
That's why you manage risk all the time!
No range sustains all the time.
No strategy works all the time.
That's why you manage risk all the time!
The Essential Guide to Price Action Trading
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[Why support and resistance are not lines on your chart]
Let me share with you a story…
In my early days of trading, I used to think my support and resistance lines are the best and the market will respect it to the pip.
But it didn’t take me long to realize my support and resistance levels keep getting breached, and I thought it was a breakout.
So I traded the breakout.
The next thing I know, the price quickly made a swift reversal in the opposite direction and I got stopped out.
So, I looked back at my charts and asked myself:
“What the hell went wrong?”
Well, it seems the levels I drew did hold up, albeit not to the exact pip.
And that’s when I had an “Aha!” moment…
I realized support and resistance are not lines, instead, they are areas on my chart. Here’s why…
There are usually two groups of traders in the market:
- FOMO traders
- Cheapo traders
I’ll explain…
Traders with the fear of missing out (FOMO) would enter their trades the moment price comes close to support.
And if there’s enough buying pressure, the market would reverse at that location.
On the other hand, some traders want to get the best possible price (cheapo traders), so they place orders at the lows of support. And if enough traders do it, the market will reverse near the lows of support.
But here’s the thing:
You’ve no idea which group of traders will be in control. Whether it’s FOMO or cheapo traders.
Thus, support and resistance are areas on your chart, not lines.
Let me share with you a story…
In my early days of trading, I used to think my support and resistance lines are the best and the market will respect it to the pip.
But it didn’t take me long to realize my support and resistance levels keep getting breached, and I thought it was a breakout.
So I traded the breakout.
The next thing I know, the price quickly made a swift reversal in the opposite direction and I got stopped out.
So, I looked back at my charts and asked myself:
“What the hell went wrong?”
Well, it seems the levels I drew did hold up, albeit not to the exact pip.
And that’s when I had an “Aha!” moment…
I realized support and resistance are not lines, instead, they are areas on my chart. Here’s why…
There are usually two groups of traders in the market:
- FOMO traders
- Cheapo traders
I’ll explain…
Traders with the fear of missing out (FOMO) would enter their trades the moment price comes close to support.
And if there’s enough buying pressure, the market would reverse at that location.
On the other hand, some traders want to get the best possible price (cheapo traders), so they place orders at the lows of support. And if enough traders do it, the market will reverse near the lows of support.
But here’s the thing:
You’ve no idea which group of traders will be in control. Whether it’s FOMO or cheapo traders.
Thus, support and resistance are areas on your chart, not lines.
Candlestick Charts Explained
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MACD Indicator Explained
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[Support could become resistance, why?]
There are two reasons for this…
Reason #1: Losing traders hoping to get out at breakeven
Support is an area where potential buying pressure could step in and push the price higher.
However, support doesn’t always hold.
When it breaks, those traders who are long will be sitting in the red. The smart traders will cut their losses and move on. But, stubborn traders will hold onto to their losses and hope the price will reverse back to their entry price — so they can get out at breakeven.
So if you think about it, this group of stubborn traders will create selling pressure at their entry price as they exit their positions, and if there’s enough of such traders, support will become resistance.
But that’s not all because…
Reason #2: Textbook setup
Traders familiar with classical technical analysis will look to sell at the previous area of support as that’s what most textbooks teach.
And if you get enough traders “following” the textbook setup, it puts selling pressure on the previous area of support which could now become resistance.
There are two reasons for this…
Reason #1: Losing traders hoping to get out at breakeven
Support is an area where potential buying pressure could step in and push the price higher.
However, support doesn’t always hold.
When it breaks, those traders who are long will be sitting in the red. The smart traders will cut their losses and move on. But, stubborn traders will hold onto to their losses and hope the price will reverse back to their entry price — so they can get out at breakeven.
So if you think about it, this group of stubborn traders will create selling pressure at their entry price as they exit their positions, and if there’s enough of such traders, support will become resistance.
But that’s not all because…
Reason #2: Textbook setup
Traders familiar with classical technical analysis will look to sell at the previous area of support as that’s what most textbooks teach.
And if you get enough traders “following” the textbook setup, it puts selling pressure on the previous area of support which could now become resistance.
Discover Professional Price Action Trading Strategies To Profit In Bull And Bear Markets
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Learn More 👉 https://priceactiontradingsecrets.com/
Trading will not make you rich.
At least not next week, month, or year.
But if you persevere, protect your downside, and compound your returns—you will make it.
At least not next week, month, or year.
But if you persevere, protect your downside, and compound your returns—you will make it.
[STARTS IN 12 HOURS]
Do you trade the US stock market?
Then join me at my free upcoming event called, Stock Trading Secrets.
Claim your free ticket here: https://www.tradingwithrayner.com/sts/
In this 2-hour webinar, you'll discover...
1. How to beat the markets and earn an extra 10%, 20%, or even 40% a year—without analyzing candlestick charts, reading financial reports, or studying technical analysis
2. How to grow your account to 7-figures and beyond even if you have a small starting capital
3. How to generate consistent profits during a bull market, bear market, or even a recession
4. A simple trading system to profit from the stock market—even if you have tried everything else and failed
So if you trade the US stock market or have plans to do so, then this event is for you.
Claim your free ticket here... https://www.tradingwithrayner.com/sts/
Do you trade the US stock market?
Then join me at my free upcoming event called, Stock Trading Secrets.
Claim your free ticket here: https://www.tradingwithrayner.com/sts/
In this 2-hour webinar, you'll discover...
1. How to beat the markets and earn an extra 10%, 20%, or even 40% a year—without analyzing candlestick charts, reading financial reports, or studying technical analysis
2. How to grow your account to 7-figures and beyond even if you have a small starting capital
3. How to generate consistent profits during a bull market, bear market, or even a recession
4. A simple trading system to profit from the stock market—even if you have tried everything else and failed
So if you trade the US stock market or have plans to do so, then this event is for you.
Claim your free ticket here... https://www.tradingwithrayner.com/sts/
Trend Reversal Trading Strategy Guide
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A detailed guide on how to trade chart patterns like a pro even if you have no trading experience
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