Dynamic vs. Static Support/Resistance

– Dynamic vs. Static Support and Resistance

o Dynamic = always moving, always re-calculating

 Moving averages
 Trigger lines
 Developing value area
 HOD/LOD

o Static = always the same, does not change

 Prev HOD/LOD
 Double-tops and bottoms
 Auto-levels indicator s/r
 Big round numbers

o How do I make money?

 Pay close attention to those dynamic levels of S/R

• Looking for a long trade, be sure to keep an eye on the overhead resistance from trigger lines, because they are getting closer and closer to your entry point as the price moves higher.

– Average true range (ATR)

o Is it rising or is it falling?

o Check every 30mins

– Following the market’s personality

o Check these every 30 mins throughout the trading day

 ATR: is it rising or falling?
 Speed: is it faster or slower than the last time I checked?
 Volume: are we seeing a high volume day or a low volume day?

– Looking for multiple confirmation

o If we have a scalp trade setting up, we also use slower timeframe to confirm this faster timeframe trade.

– Friday was a very whippy trading day:

o Use a slower timeframe

o With the slower timeframe comes wider strops and targets

o Wider stops and targets will help you avoid the choppy back and forth ‘noise’ for the scalpers we saw on Friday.

– Dollar index:

o No required to enter or avoid a trade
o Highly recommended that we take it into consideration

 Dollar makes new highs, im looking for the next short entry on the market im trading
 Dollar is trading flat = I want to be extra careful when taking a trade inside a sideways range.