One of the most tempting and basic forms of trading is related to support and resistance. Have you ever drawn a horizontal line to connect a series of candles or price bars that group together as though they cannot pass beyond an invisible barrier? Have you done this to the short side and the long side?
Yes, identifying highs and lows, or tops and bottoms, or support and resistance, can be useful, but not as a primary trading strategy in our opinion. When coupled with a trading system like the Atlas Line or Trade Scalper, you can get clear direction on whether the market is expected to move high or low.
In past videos, you’ve seen how DayTradeToWin uses a price action approach to Fibonaccis, simply using the 50% value between a previous high and a low. When that 50% is surpassed, that can be the start of a longer (and hopefully profitable) long (buy) opportunity. But what if there was a way to immediately make sense of intraday price stalling? Yes, in the video in this post, you’ll see how John Paul’s use of price action Yo-Yo Bars can help you stay clear of choppy conditions.
The Atlas Line provided plenty of Strength (S) and Pullback (P) signals that were on point. Those signals and their manual calculation are taught in the included live training. Generally, if you see those signals, price is expected to move in a consistent direction instead of chop back and forth. Watch for such signals around those extended periods of price stagnation, such as the 35+ minute period shown in the video.