Support & Resistance Strategy — Step-by-Step Guide & Transcript

[00:04] use fractals to find it. Default settings already built into Pocket Option. Nothing to download, nothing to change. It just marks the spot for me. After that, it's pure price action. 30-second chart, 1 minute expiry. Let me

[00:19] show you how to draw the line and then I'll trade it live. Four setups today. One of them lost. And I'll show you exactly which filter I missed. And one of them looked perfect level there. Price right at it. I didn't touch it.

[00:32] That one is the most important 30 seconds in this video. Let's start with the line. Open your indicators. Search fractal. Add it. Don't change a single setting. Default is exactly what we want. Now you'll see small arrows on the

[00:46] price tried to go higher there and failed. An arrow below means price tried to go lower and failed. That's all. A fractal is a spot where the market turned around. Here's where beginners

[00:58] get stuck. There are arrows everywhere. Which one do you use? Not all of them. Look for arrows sitting close together like these. Don't draw three lines. You'll just make a mess. For resistance, take the highest arrow in that group.

[01:11] point where the market really refused to go further. Now, draw one horizontal line right there. One line. That's your level. Before you trade it, check how strong it is. Two things. One, look at that candle. Is there a long wick above

[01:26] the body? A long wick means price got pushed back hard. Two, after that candle, did price move away quickly or did it just sit there? Long wick plus a fast move away. Strong level, no wick. Price hanging around. Weak level. I skip

[01:41] those and wait for a better one. Now the entry. Four things I check. First, is to this level? First touch is the strongest. If price has already bounced off it more than three times, the level is worn out. Skip it. Second, is there a

[01:56] rejection wick on the candle at the level? Third, which way is the chart moving? Downtrend for sells, uptrend for buys. Going against the trend makes it weak. Fourth, and this one is not optional. I need a confirmation candle.

[02:10] For a sell, a bearish candle for a buy, a bullish candle. No confirmation, no trade. Here it is on a sell. Line drawn at the highest arrow. Price comes up, long wick, it gets rejected. Chart is heading down, so the trend agrees. Now I

[02:25] wait. This candle closes bearish. That's my confirmation. Sell. 30 second chart. 1 minute expiry. Same thing. Flipped for a buy line at the lowest arrow. Price drops into it. Long wick underneath chart heading up. Bullish candle closes.

[02:40] That's the confirmation. Buy. That's the whole method. Now, let's use it live before the live trades. One honest minute. Everything you're about to see is me trading my own account. These are real trades. Some win, some lose. You'll

[02:54] see both today because that's what actually happens. This is educational. It is not financial advice and it's not a promise of results. Short-term trading carries real risk and you can lose your money. Whatever you're comfortable

[03:06] losing, that's the number and not one rupee more. If you're new, demo first. Learn the setup before you risk anything. Okay, first trade. All right, last one. And this is the setup that confuses beginners the most. So stay

[03:20] with me. Look at the last few minutes. Candle after candle going down. And I know what you're thinking. Falling market. I'm not buying that. But watch when I zoom out. See it? The bigger move here is up. Price climbed, made its

[03:33] high, and now it's coming back into it. That's not a reversal. That's a pullback. Big difference. So the trend is still on my side. I just need a level that holds. And here's the problem. the closest fractal below us. Useless. A

[03:47] candle already punched straight through it. Once a level breaks, it's not a level anymore. So, I go further back and take the last one that actually held older line, but untouched. Now, come in close. Three candles. This one closes

[04:01] bearish, but look at the bottom. Long wick. Price tried to go lower and got thrown right back off my level. Then a dogee. Buyers and sellers canceling out. The selling's out of fuel. Then this one drops rejected again closes red. I know

[04:17] red feels wrong for a buy, but the color isn't the story. That wick underneath is third rejection. Same line. And here I'll be straight with you. My own rule says wait for a green confirmation candle. I didn't. Three rejections

[04:33] stacked at one level. Price one candle away. For me, that's stronger than a away. For me, that's stronger than a single green candle. So buy 1 minute expiry. And there it is. Next candle turns strongly bullish and it closes as

[04:46] a win. But before you copy that, I skipped my own confirmation step because I had three rejections instead. That's judgment. And judgment comes from screen time, not from a video. If you're new, don't skip it. Wait for the green

[04:59] candle. Trade the clean ones. Level holds, trend degrees, one confirmation. Do a 100 of those and setups like this will read themselves. That's four setups exactly as they happened. If this helped, subscribe. Next one goes deeper

[05:13] into rejection wicks. Now, this one is textbook, so let me slow down. Look at what price has been doing. It's been working between these two lines for a while. Coming up, backing off, dropping down, bouncing. My upper line is the one

[05:28] that matters right now. And watch this candle. Price pushes up, pokes its head above my level, and gets slapped straight back down. Look at that upper wick. That's not buyers winning. That's buyers running out of room. Then the

[05:42] very next candle closes bearish level holding rejection wick confirmation holding rejection wick confirmation candle. Every box ticked sell. Now talk you through what's actually going on in my head. Price is moving my way.

[05:56] Good. But I'm not watching the number. I'm watching the candles. What I want to see is exactly this. Price staying underneath my line and not trying to climb back over it. That's the level doing its job. What would worry me if a

[06:11] candle pushed back up and closed above that line? That would tell me the rejection was fake and buyers came back with more. That happens and when it does, you take the loss and move on. But that's not happening here. Every candle

[06:25] is staying below. Sellers are still in control. This is the difference between trading a level and hoping. When the level holds, you sit still. When it breaks, you accept it. You don't argue with the chart. And there it is. Price

[06:39] never came back above the line. And this one closes as a win. Nothing clever happened here. I didn't predict anything. I found a level. I waited for price to reject it. I waited for one bearish candle and then I clicked.

[06:53] That's it. That's the whole thing. The hard part isn't the setup. It's sitting Now, this one I have to show you because I got it wrong. The trend is down. That part's fine. But look where my level is up here. And look where price is down

[07:08] here. Price never came up and touched it. I sold anyway. And that's the exact mistake I warned you about earlier. I traded the trend instead of the level. Watch what happens. There's no level holding price down. So, there's nothing

[07:20] stopping buyers. Price just drifts, then pushes up against me, and it closes as a loss. Here's the lesson, and it's the most important one in this video. A downtrend on its own is not a signal. My entry needs three things. price at the

[07:34] level, a rejection off it, and a confirmation candle. I had one out of I could have cut this trade out of the video, but you'd have learned nothing, and you'd have thought this strategy wins every time. It doesn't. Nothing

[07:47] does. Wait for price to come to your level. If it doesn't come, you don't watch this level because it's already proved itself. Price came down to this line earlier, bounced, came back, bounced again. Every time sellers pushed

[08:00] it here, buyers pushed it straight back up. So, when price drops into it a third time, I'm already interested. And look at the candle. It dips and it gets bought back up. Small body wick underneath. That's the same rejection

[08:12] I've been showing you all video. Then a bullish candle closes above it. That's my confirmation. Buy. And now I just want to see one thing. Price staying above that line. It doesn't have to run. It just has to hold. It holds. Candle

[08:26] closes higher then higher again. closes as a win. And notice what made this one easy. I didn't have to guess whether the level was any good. The chart had advantage of this whole method. You're not predicting anything. You're waiting

[08:40] for a level the market has already respected and then asking it to respect it one more time. So, let's put the whole thing back together in 30 seconds. Turn on fractals. Default settings. Nothing to change. Find where two or

[08:53] three arrows sit close together. Take the highest one for resistance, the lowest for support, and draw one line. Then wait. Don't trade the trend. Don't when it reaches the line. You need a

[09:06] rejection wick and one confirmation candle. Bearish for a sell, bullish for a buy. That's it. No settings, no second indicator, no guessing. And remember the one I got wrong. Trend was fine, but price never even reached my level, and I

[09:20] setup. It's a guess with a nice chart behind it. If you take one thing from this video, take that. A level touch is not a signal. And no level touch at all is definitely not a signal. The free PDF

[09:33] if you haven't grabbed it yet. And subscribe if this was useful. Next one goes deeper into rejection wicks, how to tell a real one from a fake one, because that's where most of your losses are hiding. See you in the next one.