Video Summary

Support and resistance are important technical indicators that can help traders identify potential reversal points. To draw support and resistance levels, traders should look for areas where price has repeatedly stopped and reversed. The four secret rules of support and resistance are: 1. Multiple rejections: A support or resistance level should have been tested at least twice. 2. Price must move away from the swing low or swing high: A support or resistance level should be created after a significant move in price. 3. A level can be both support and resistance: A support level can become a resistance level and vice versa. 4. The levels must be near the current price: The levels should be drawn based on recent price action. Once a support or resistance level has been identified, traders can look for trading opportunities when price approaches the level. For example, a trader could enter a long trade when price approaches a support level and a bullish reversal candle forms. Similarly, a trader could enter a short trade when price approaches a resistance level and a bearish reversal candle forms. Support and resistance levels are not always perfect, so traders should use other technical indicators to confirm their trading decisions.