hello everyone this is sector and welcome to a new video of my training course in this video I'm gonna be talking about one of the main elements of my training system that's the dynamic area of support and resistance which is a basically the area at the band the band between 30 and 50 simple moving average of the clothes right this is in this discharge into each other you are seeing right now the third two simple moving average is a marketing read as are in green the fifties Martin read and hundreds marketing blue while the dynamic area would be these bands okay these area within the 50 and the 30 alright in my opinion it's very important our area and that's a trend driver i always like to keep an eye on on the dynamic area because it's it's a good indicator as far that we can use to our you know to read the overall health of the trend anyway i'm gonna i'm gonna be showing you some while some different charts in different time frames and different currency pass so you can see the dynamic area of support and 36 on resistance in play the resistance of while I'm different showing you different charts and different like I said currency crosses and different time friends is so you understand that this is a universal principle applies to all the time frames and while basically it's you know is why i consider it out one of the main elements of money out of my driving system right okay first of all there is one one requirement that we need to make sure that actually applies to the air to that particular challenge that we are we are looking into at that precise time before you know before while trying to analyze or trying to take any tried from the dynamic area of resistance or support in that requirement is that the they must be a trend in place right I was just mentioning how the dynamic area of support and resistance is the area between the third and the 50 well that's not totally accurate ok it's a dynamic the day the area between 30 and 50 in trending markets and only in training markets that means that well if far if we let them is crawl back in my chart for example again all right right here right now i am showing you arrange about market a guy very clear range of market up prices basically we've been up and down and then up and then down and happened down again basically it's moving sideways or at least it's definitely not moving in any particular direction you know there's no no you are in no particular bias in this charge okay while in this case that the area between the 30 and the f50 meaning between the green and the red moving average bowls no significance whatsoever right as you can see this area is being preached up reach down reach up reach down once again so on and so forth he has no relevance whatsoever in non trending scenarios ok so whenever you are to apply the principles and what I'm showing you on this chart make sure that fastball you are indeed looking into trending market again to training charge as I as we are so on the first video of destroying calls as far as i am concerned trending chart trending currency bat is that that shows the three my three main moving averages are gave 30 1530 1500 all of them in order all of them parallel tore them prize nowhere near the hand right price spending most of the time in the right are in right side of the 50 accenture exeter ok so like I say always make sure that you are that you are actually looking into a trending chart before trying to apply the the concept of a day of the aerodynamic support and resistance otherwise like I say this area hold no relevance whatsoever right okay most of the time in trending markets ok with that in mind already that we are in a trending in the trendiness an area in the step of market conditions the most of the strings at this in a healthy trend are contained ok or or let's say they bounce off this area between 30 and 50 moving average the reasons of y at the I like to keep an area on the dynamic area of support and resistance basically the richness of white works are is because institutional players like to keep an eye out on this area okay on these retracements in order to other to their positions all right i'm talking about of course large investment banks had to find mine yours except you're excited you know the people who who tried a volume enough to move to actually move the market as you guys know for excess an enormous market in and you definitely need a large capital to have any impact on it again that's only only investment banks and institutional players have the capacity to have you know their individual positions to have any sort of impact on these on these larger on these larger markets of forex so these guys the the largest riders they basically are all of them trying to writers themselves in of course your follow different natural approaches but basically they they sell cool box in a downtrend or they buy retracement seen that in an option ok let's say you have an apt rent and they basically by the pool box right price retraces back again and they add up to they're already long position again and moving and therefore price and moves forth into a new swing all right then upon the pool back there I love to their position and so on and so forth ok same things in a downtrend and I know for a fact that they do like to keep an area on this retracements areas to around the 30 and 50 simple moving average to add up to their position alright so let's let's say that the air the air between 30 and 50 moving average is the decision taking area ok is an area that you know they are going to be loads of enormous limits orders ok out either sell or by leaving all the depending on what side of the market you are of course depending on whether you are in an afternoon or inbound Trent and you know that price is bound to its bound to react in some way to that area right if I'm let's say we are in this clear down Trent right and prize pools back to the dynamic area of resistance in this case we're in the downtrend if we have in or enough limit orders stuck up at this area from from different our institutional banks from different hedge fund managers etc to create a new swing those limit orders will be a stuck-up like I say indeed in this area between 30 and 50 and therefore bank and you swing will be created upon the next pullback same thing if if they are enough orders at this part of the and this part of the chart at this junction of the chart in New swing will be created again always in the direction of the main trend otherwise if institutional players have lost interest in this chart in this currency power prize in fire in the other hand will continue moving up alright so that's basically the reasons why i like to keep an area of the dynamic area support and resistance it's a decision taking area you know in area where if the trend is to survive most of the swings should be should spring off that area right should be created off that and therefore 95 of the price action will be contained at the right side of that area okay let's assume this is about what you know let's let's picture a dynamic area as a boundary right as a frontier if the if the trend is to are you know to still be in place prize for this ninety-five percent of the price action should be contained on the right side in this cases we are in the downtrend you should be contained on the lower side of the dynamic area okay as soon as we reach this area all right as soon as we break above and we begin to have you know enough price action above this area while the trend is definitely our weekend all right or or even you know finished all right now i'm going to be showing you some some charts now that i have physics explain the and the basic you know BR theory let's say behind the dynamic area of support and assistance and so are you can you know CY yourself how prize react of this area always interesting scenarios ok like i was saying before if there is no trend there is no point in in having a look at the 50 or the third two simple moving average because they are irrelevant okay the only work in intravenous in areas alright there we go at festival in this case the charger been seen all of what this video is a USD against the CHF in one hour time frame right up on this level cap on this moment this time of the chart the moving averages falling plays alright as you can see the 30 is below the 50 and 50 is below the hundred or over prices nowhere near the handwriting ok all of them are parallel to each other etc etc fine we are in a training scenario a sperm I am i trending conditions ok from this moment on I am liking my main trading strategy will be to wait for pullbacks right to the dynamic area of resistance and from there I'm going to be searching for short entries and only for short entries ok of course I'm not going to enter any tried just this price retraces back right Justice price retraces back to a dynamic area of resistance I'm not just gonna you know and shorting the market out-of-the-blue ok I'm going to be searching for my entry a signal will be basically a triggered on the short timeframes Apple reversal price formation here ok I don't get into that I explained that I explained the air the reverse of formations in Chapter number three of this training course for the time being I just want you to know I just want you to more or less have a picture of how my training now trading system goes as far as the entry and actually more than the entry at as far as we're in the chart i will about search for doors those those centers ok alright so like I was saying we have a downtrend right guys in this downtrend we have a pullback back to what first of all we had this pullback then we have another string down and now another pool back to the dynamic area of fire resistance in this case I will be like I said searching for r4 about reverse of formations in the short time frames in order to enter short in this market if I do get these if I do get the reverse information and short timeframes would enter short always all and only shorts reading the downtrend and then I would ride prize for inducing to the downside and then of course i said my my final targets ok which are explained on chapter number four and i would actually take my profits are off the table okay cashing these destroyed and then wait for the next opportunity the next opportunity comes here ok we have another retracement back to the dynamic area of resistance in this case we just keep the the 30 simple moving average but on the list we do get there alright alright within a fair enough then I would once price rejoices back okay i usually one of you know a trick of mine is to always set sound alarm few peeps below the third two simple moving average right before reaching the third two simple moving average so whenever I have a tremendous an area like I say I place my son alarms 10 peeps before that then peace before the feds simple moving average so I it weren't whenever price retraces back so i can fellow price action in real time like I say when I get into that I explained on the chapter number free for the time being let's i would just say that in this case upon having you know taking the short entry and hopefully scare cashing in some profit i would wait for the next opportunity this next opportunity comes here retracement then I would soon once again into the shorter timeframes once again i would i would search for a reverse of formation at that level always looking for bounces down of the dynamic area of resistance ok we have a retracement and we'll search for a bounce down in the direction of the main trend band trigger short entry write it down next opportunity same thing retracement up to the dynamic area of resistance ok such for reversal formation if it does happen if i do see a reversal formation if we do get bounced down of here of that level trigger your short entry bear write it down next thing up ok next swing up next next pullback same thing fullback back to the dynamic area of resistance swimming to the short time friends such for our best information do I see that such that reverse information YC and bounce down of that level and short and new swing down again you are training high probability chances festival you're driving in the direction of the main trend ok that's crucial right guys as i was about as i was mentioning on the first video if you do not try it in the direction of the main train you can forget about achieving any type of consistency as far as training goes not only for explaining it doesn't matter with your training forex on our stocks futures oil corn normally the market your training the only way to achieve some sort of consistency in this in this business is to try to always with the with the trend on your side okay with moving averages pointing in there on the trading direction and in and that's that's the way i personally do it organic ice is the only way to make sure that you are stacking up the odds on your on your side all right so like I say these are high probably chances first of all you have the trend on your side right second second element on your favor you're not just entering at any time you're just not taking inches out of the blue you actually wait for a pullback to to an optimum area get to an area of decision taken to an area where if if the if the trend is indeed going to continue if the trend is indeed two are you know to our while to trend on it will be from this area from the area between 30 and 50 in most cases all right like I sign you you have you're not entering here or here I mean here or here or here no none of that you are basically waiting for a pool back to the optimal Mary up once you get your signal band you enter short ok always you wait for the perfect time the area between the 30 and the 50 simple moving average right so that's two elements of your favor the trent and dynamic area of resistance more earth elemental you on your favor you're just not entering right as we retrace back right I never enter I never lets a place and yeah SL limit order someone around here I never do that what I do is Apple the retracement is if I see that price begins to curl around if I do get that reverse of formation which like I say I will get into that on the chapter number three of this course if I see that price begins to curl they're bouncing from that level then I into sure that's my confirmation alright like I say upon a retracement I don't quite cell right that now sir if I will only it's only a enter short if price begins to call them and here ok once you get the confirmation that dynamic area of resistance is indeed holding prize and prize means to curl in the direction of the of the main trend and then i will then too short okay same here I don't show up here I wait for the turnaround and there is what I would enter short okay and right in your swing to the downside alright so you are stacking the odds in your favor on your favor at the end of the day training the probability is the probability game right guys I know uh you've probably read over the internet that are you know training is complicated trading implies many different are you know you super complicated system super-complicated are indicators that's not the reality okay training is all about it's all about mathematics it's about provide probabilities ok at many management are you training with the with the old on your side right are you trying inner in a training scenario ru trending are you trading moreover in the direction of the trend okay are you trying at the optimum area of of the chart are you waiting for the confirmation okay are you waiting for the confirmation that the front is indeed holding and the new swing maybe creating again maybe about to be created actually ok you are basically uh like I say stocking up chances all on your side and that will increase your win-loss ratio instead of scoring a 50-50 ok you will be trading on a 60-40 7030 7525 8020 alright you're stacking up chances on your favor right in order to do that you've got to analyze your chart you've got to analyze whether you want trending you know when you are trading at the right time of the chart eccentric cetera let me show you know the ton of the chart ok in this case with now just seen the USD against the swiss franc and that's american war against the swiss franc and on the one hour timeframe now i'm going to show you a complete different currency back in a complete different timeframe ok this is the sterling pound against the American dollar what we called usually calling the forex market the cable ok we call the cable for these currency path on the weekly chart alright very very long-term shot right now let's analyze these fish are why not guys but I festival how are the these moving averages knotting or my job first of all I see are all in order only 37 of 50 and 50 is about the hundred good all right moreover i can see that they are all pointing in the same direction they're more or less parallel right more or less parallel especially the 30 and 50 which are the two most important ones price is nowhere near the hand thread okay you see this is the heir the hundred moving average and prizes very far away from it isn't okay and well and moreover price is swinging harmonically of the dynamic area of support right swinging harmonically after dynamic area of support isn't it alright then we are in a clearly trending as scenario yup it's certainly a trained assassin area so in this case now that we've recognized that we are in a trending charge okay now the area we want to keep an eye on is the area remember between 30 and 50 simple moving average alright and especially it bounces a guy the cool box to that area in order to confirm or to verify whether we get a bounce of that area and we actually do ok just have a look at the chart everytime everytime prize k well in this case the traces back to the dynamic area our first support by the way this is the enemy carry out support since we land in and out in an uptrend it will be called resistance if we were in a downtrend okay all right every time I was saying every time prize pulls back right to the dynamic area of fun of support you know all the enormous amount of limit orders again by limit orders in this case in all the two long are enough to hold price below so everytime price goes down yeah like I was saying this is a decision taking area and price reacts of that period okay pull back reaction pullback reaction alright it happens many times this that means that this is healthy healthy trying okay is a trend that's caring enough momentum to the upside ok every time they're bears and managed to pull prize down to the dynamic area of support the Bulls can play the Bulls regain control of the situation and ban Bush price for the outside ok another pull back the Bulls once again coming control and you know basically a slap the best in the chicken bands goes to the off it goes to the outside again it's always important to make sure that up on every pounds of the dynamic area of support we score new heights right we bridge the previous high then we have a retracement we bounced off that area and we score a new high and other retracement of figures scoring new highs and all the retracement our feet girls scoring a new high ok always remember guys that from a from a very basic point of view a trend is nothing but a consecutive string of higher highs right and higher lows if you see that your your chart is making higher highs and higher lows right you are basically uptrending okay i so much as I was planning on the first video of this course and just making higher highs and higher lows it's not enough in my opinion you want the moving averages to you know blood and earth under certain conditions in the chart used while all of them in order all of them are actually etc etc and so in this type of training scenarios like I say every time if when prize pulls back to the heir to the dynamic area of support and if it does not reach it right if if he does not breach it in meaning that if this band actually is a strong enough to hold rise right up on the retracement again up on the retrenchment if it's a strong enough to turn rise around the in direction of a very clear trend enter along there 15 yea high high permeability trite hyperbole to try next retracement Sam story we will reach dynamic area we see price beginning to turn around these 15 and nice long area or a nice area to enter long for another swing up alright that's basically what i doing my usual trading approach i search for a training scenario alright i keep an eye on my dynamic area of support then I wait for a pullback to that area right that way we get a pool back to that area and then like I say I read price action in a shorter time frames if I see the beginning of a retracement bang i enter long there and I ride for a new swing up and the next swing over the same thing is the dynamic area holding the retracement if it is bang there I go I want to be long because i am in the direction of the main trend i am buying i am going along at the right time of the chart i'm not going along here or here or here no no I'm going wrong at the right a surprise tense around a surprise rare pulls back and then begins to crawl around in the direction of the main trend that's the beautiful area you want to enter long from all right so act like I say keep an area keeping everything that are on the dynamic area of support when you see a trending scenario as per my moving average conditions because that's a very strong area right it's in it's an area that price is somehow bound to react of it either to reach it ok and if it bridges through then you know you don't want to search for long interest anymore let's say this retracement didn't stop here but it is that it went all the way down here at me the dynamic area of of support was not strong enough to hold the retracement and therefore you don't want to be searching for a long interest anymore alright as long as at this area begins to I hold prize and price begins to turn around and use them into the short timeframes and you see a reverse information as explained on chapter free you're good to go for a long injury you are trying a high probability trite right next to let me show you know that another example in this case the USDA against the Canadian door okay i'm gonna make these very quickly because well it's basically the same thing first of all we search our we analyze whether we're in a trending scenario or not yes we are all the moving averages in the same direction no crossover whatsoever little bit of sneaking around there they get close to each other but none there is no crossover whatsoever prize nowhere near the handheld world hundred is the blue I remember and prices you know very far below their eccentric cetera okay in the training scenario then what do we do we keep an eye on the dynamic area of support and resistance as usual we wait for price to reach these area once again and have a look just just just just look at the chart okay you don't have to believe me just look at the chart just in fact this look at your chart go ahead on your own chart search for air for moments where all the all the moving averages were fully know they're pointing the same direction parallel to each other etc etc and when that happens see their reactions of the dynamic area of support and resistance if price bridge through you would have taken no injury if price upon attaching the dynamic area of resistance begins to Carol around you are you are indeed about or you could be about to be training a high probability right okay like they say don't trust me just go to your own charts below the 32 1500 simple moving average scroll back in time such when they fall in order and when they do market the area between 30 and 50 if that area hold ok if when price retraces here holds I mean of course if price reaches fruit section no more ok there is not try to take their by defeat this whole emprise begins to call down in the direction of the main Trent just have just run some tests and a much rights and and see what would have happened you would have made money its high you will have made money in the long term perhaps you may lose one try to force loosen tried to happen in driving okay they are unavoidable I try I for many many losing trades you can browse through my blog and you will see that I indeed score losing trades here and there just like any other try that but i was saying before trying to sell out probably probabilities and making sure that in the longer term in the long run the winners will outnumber the losers ok and that that's indeed that will indeed be the case if you trend if you tried in direction of the trend and if you wait for price to pull back to the dynamic area of resistance and then you tried as a as the turnaround begins to take place begins to take place and then you write it down you write it down you for example here we gotta pull back but we didn't reach the dynamic area of resistance that we then this but there have been a good injury patients is important when you cancel training guys you're not supposed to try every single set up you see in front of your charts okay you've gotta wait until all until all the right conditions actually apply right in this pullback we did not get quite to the dynamic area of resistance that we ok so if you tried it as this was standing around let's say there that would have been an aggressive tried i personally am a conservative trailer that depends on you know where you want to be an aggressive Troyer on a conservative Troy there i myself and I am I conservative trailer I don't mind missing out on few swings like for example on this one as long as my win-loss ratio remains high meaning that as long as load those traits that i doing the take they carry a high chance of actually becoming a winning tried right and that's basically what I'm trying to teach you here ok downtrend retracement back to dynamic area far of resistance means to call around let's say trigger your short entry that and right same thing we trace them back begins to Cal around into short band here note right guys we did not breach dynamic area but here with teeth begins to call around short man all right as far that once again repeating the hands of time sorry about the guys I'm know I'm quite happy here don't worry about the actual entry signal i will explain another chapter number free and chapter number two if i am correct if i'm not mistaken to adopt a number through chapter number three displays all about entry so as far as this video is concerned don't worry too much about entries but just mind swinging you know the harmonic swinging note right here they didn't have the harmonic swing information all right and keep an eye on the dynamic area of support and resistance alright okay i know the chart why not another uptrending chart beautiful a trend with those moving averages nicely parallel to each other nicely pointing the same direction a prize steering clear of the hand red moving average eccentric cetera and in this case price indeed holding you know if if we drove a solid band between 30 and 50 we can clearly see that prize is holy I mean that that band the dynamic area of supporting these guys it's clearly holding prized above and if it does it means that this is a healthy uptrend we have a quick peers below here and another quick peers below that but you know it's it's um it's a quick piece video but immediately after it should back up that's a that's alright okay markets are not perfect as long as you don't begin to get one two three four bars closing below the 50 as long as you know it's just a quick dive below but immediately after bang goes back up then go right as long as you don't get beginning to get multiple bar closes below the 50 as long as price gets nowhere near the hundred that if that is ok if it whenever it begins to turn around right all right in this case we can't really say the same thing you know we are in an uptrend price retraces back as soon as it begins to call up you know you're good to go for a long entry same thing you are well and all the string up you make new highs retracement reaches the dynamic area of support prize begins to turn around trigger you're wrong entry bang and other swing up you make new highs retraces back down we don't touch the dynamic area of support guys to see that even touch the retracement was not deep enough if it's not dripping off and you decide to take an entry that's an aggressive entry I mean you can it's up to you but please be aware that you're being you're definitely been more aggressive than I am myself or my on my am my own training but you know I respect every type of trading in my opinion the way I like to try it myself it's too if there is no pool back to the dynamic area of of reach of resistance or support that is not right I you know just that simple in the next thing down we definitely get to address them back into this area don't we well it does hold it a guy price that's not very true we get no classes no make multiple bar closest below the 50 price gets no warning of a hundred so yep indeed price the dynamic area of support is holding prized above as soon as this theme</