What does Support and Resistance really tell you?

in trading •  5 months ago

First things first: I do not care about resistance.

I might take some profits around resistance areas, but it doesn't effect my trading much.. For me, its all about support/bases.. Lets dive into the charts and try to understand what those support/base areas are really telling us.

So I hope this video helped answer some questions about how to draw support/bases and feel confident about your trade entries. As you can see I usually layer into my trades and get bigger size the better the deal gets. But it takes time to feel comfortable trading this way, so keep your trade size small while your starting out.

What were the 2 main points of the video:

(1) When evaluating a base, the bigger the bounce (reaction) off that base, the more safe it will be when there is a crack (surprise).. Draw your support/bases at the bottom of the big bounces.
(2) Keep your bases current. No need to go a month or two back to look for areas of support.

Sorry the video ran a little long (40 mins), Ill try to keep them shorter. But thanks for watching, your votes and comments keep me motivated to keep putting out more videos. Please let me know when you catch a good panic dive and make some $$. I love to hear everyone making good safe trades.

Luc

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Hello Luc, is there a way you can explain your videos in plain text with pictures?The reason i'm asking is because your American accent is a bit too fast for me to catch up with (I'm African btw ). Although i'm enjoying your videos.I hope i am not asking for too much? If you can't, that will still be cool with me.

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use captions, they are pretty helpful though not totally accurate

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...And Luc is Canadian ;-)

I'll look at this for real tomorrow, but it's sometihng I'm quite interested to learn more about these days! thanks

wow a 40 min video luc i think that's an all time record! Really appreciate you taking your time to make these for us.

PS. did you get in that Quantum Resistant ledger coin? huge panic about 10 min before i posted this

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Sorry, no.. I had to run out with the wife.. ill check it tomorrow or later tonight

Luc, Thanks for the sweet videos! Recently got into trading crypto and have been studying so much over the last three weeks. You break it down so simply and I like your style. I also appreciate that you not trying to sell us anything. Keep em coming and in the mean time Im going to watch all your back log. Cheers!

This approach instantly caught my attention. Probably, the most deterministic solution on the market! One question: do you place your sell orders on specific levels before the bounce happens or you place them in real time? Sometimes price doesn't reach the base level.

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I place my buy orders in advance of the move im thinking will happen, then as soon as I won some coins I set a sell .. because you sometimes get a quick pop and your paid..

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Exactly the answer I was looking for. Would be awesome if you could even do a quick video on this. Thanks dude!

First off thanks so much for putting these videos together. Completely new to all of this but wow have your videos opened my eyes to the opportunity in crypto! I hope to soon be trading and your videos definitely give me more confidence in being able to start doing it successfully even as a novice. These videos are great keep them coming and I will most definitely let you know when I start making some trades!

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Yes please, let me know how your first few trades work out for you

Awesome Job as usual. Pretty Helpful! I would be interested in how are you picking charts, Do you just scan one by one, I haven't really seen any scanners for crypto, Coinigy has one but not working yet.
Also what do you use to keep track of all you trades and earnings, mine would include a few losses too!! = )

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I can't speak for luc on what he uses but I use an app called Blockfolio. It lets you add the coins you want to watch and put alarms that you set when it goes to that price you set. Also lets you input your trades you made and shows how much of a gain or loss that trade currently is.

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I just make a list of all the coins that interest me and then have lots of volume and movement.. then I add them to my favorites in Coinigy.. then I simply put price alerts on them.. I dont really have losses, so I dont keep track of my trades other than to watch my totals on all the exchanges continue to go up each day.

@quickfingersluc This content is amazing. Thank you for sharing. I'm learning a ton from you and really appreciate it

Luc, wanted to add my voice to the chorus of appreciation for what you are sharing. It is the easiest strategy to understand. Thanks for not talking with the candy in your mouth. Very distracting. ;-) Keep these videos coming. Would love to hear your thoughts on volume and how to find the right coins to trade.
Thanks again,
RICK

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yeah, i will do a video on volume soon

Good to see you back, I'll have to properly go over your last few posts :)

WOW! What a great video!
You are a good man, Luc. Good luck to you and your family.

Question: I think, I understood how to get into a trade (draw a base, setup alarms, increase position sizing on the way down to decrease avg price), but how (and when) we should get out ? And especially interested what you do if there is no bounce (or very weak bounce)?
What is the course of auctions in that case?
Thank you for doing those videos.

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Unless you get horrid horrid news, you should always get a bounce to the base that got you in the trade in the first place.. so exit anywhere around there, but i generally dont exit my full position.. I always save a little for later on.. like maybe 20% to either save as an investment or sell later higher

Thanks a ton for the video, it really helped to clarify some of the questions I had and why I was doing poorly on my first couple of trades. My main issue was drawing non-existent bases at levels of standstill rather than bounces. I am playing around with a relatively small amount of money in the market and I was wondering what a good entrance amount would be to start out with if I decide to get serious about this...$500? $1000?

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I started with $300.. and Im sure if i started with $300 again, I would be able to run it up to a few thousand quite quickly.. small accounts have the advantage of being able to trade lower volume coins.. and they give out big percentages fast.. Its a bit of a different strategy tho..

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Can you elaborate more on the strategy for small accounts?

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Yea that would be cool to see, I plan on starting with $1,000 so it would be interesting to see the variation in how you trade with the lower volume coins. Also is $1,000 enough to start trading ethereum? Or would you build it more first?

Amazing video. This changed my mind about how to setup my SR levels. Thank you again for your help.

Nice video, Luc, thanks!

Apart from BTC, are there coins that you hold (in substantial amounts) long term? And on those, do you ever try to sell after big run-ups in order to buy more at a lower price?

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I hold some of almost every coin I ever traded.. And sure I sell some when there is a big run up.. because I just keep making coins as i trade the dips.

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Also, thank you for taking time to answer to all our questions! I hope your efforts will be compensated in steempower! :)

I started trading a few months ago, and I made some decent profits with a different style. But after seeing this video I went back to see the chart and I realized that I missed so many good trading opportunities!

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I hold a little bit of every coin I get interested in.. I always hold some longterm.. so theres probably 30 coins im holding.. and I just keep trading and building bigger amounts on the ones that are active..

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  1. When you are done trading for a day, do you move your profits into USDT? 2. I guess you have quite a large amount of coins, are you using wallets/hardware wallets, or do you keep your stuff on exchanges ? 3. Love your vids, and I dont mind if they are 40mins long :)
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I did sell some BTC a few months back at 1900, thinking I would get a better price, and then it shot up to 2550, so I rebought the BTC i had sold on the first big dip to 1900 again.. So no money lost, my entire investment is safe.

hey @quickfingersluc I was going to show my friend your videos and saw your page was gone. I am glad I found you on here. Please keep making videos I got into trading because of you. I still have more to learn and you make the best videos on this. Thank you.

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Thanks for your support, Im glad they are helping.

Cant wait to watch it until tonight... Must go to work now...

Perhaps in future videos you could also explain how much to sell after the bounce. Are you selling 80% of your coins? 100%? Does it depend? If it does depend, then on what?

Awesome video. Thanks!

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I sell most of my coins on the bounce, because I cannot predict the future.. So I just make a profit and sell.. but if it was an awesome trade where I make, lets say 40% on the trade, then I would only sell half and hold the rest.. but if i made only 20% on the trade then I would hold only 20% of the position and so forth. I usually hold my profits on the trade.

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Makes sense. Thank you for taking the time to answer my question. Cheers!

Thanks for sharing! Hopefully I can check some of ur previous work, aseveryone said it's great. Best!

Hi Luc, thank you for another great video, very thorough explanation on the bases and where to buy. Can you do a similar one showing how do you sell? expected bounces etc?
for instance yesterday I got into this trade: LBC 1
Then a few hours later:
LBC 2
Because you said that we should exit in the first bounce, that's what I've tried to do, but then it bounced again. Did I exit too soon?

Thanks again for your videos. keep them coming ;)

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You should draw your base line on the chart so I can see what you were thinking.. If your base line was at .00025 then you could have expected a bounce back to that level , and it did give you that bounce,... but I wouldnt have taken that trade in the first place, even tho it did work, I dont like the risk reward, there isnt enough profit potential percentwise to justify getting in.. your dialed in too small on the chart, and I dont see a real base on a one hour bar chart, for you to make that trade, and see a base, you would need to be working off a 15min chart, and I dont think its worth it..

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Thanks for the reply ;) In this case what would be the minimum profit potential for we to enter in a trade 10%? with at least a 10% bounce reaction forming the previous base?

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yeah, 10% sounds pretty good for a minimum.. sometimes less trades make more money, by waiting for a good trade and not getting involved in low quality setups

Love how you call it base though :P but yea they are the support lines. Keep the videos coming

Hello, my first comment on steem :)
Im new in cryptocurrency market, when I asked a friend of mine where to start he advice me to your steem, and when I saw that you deleted all those videos that friend told me those are top notch I was dissapointed, but thank you very much for making new ones. It's nice to see that someone want to help the community , and all that for free. Huge respect!

Now when we know how to determine base, would be nice to see video how you determine when to get in a trade and when to get out :) Do you have some exact rulles, for example when base break for lets say 10% get in, when is down 20% get more.., and when is back to base get out?

Looking forward to the new video and wish you best of luck!

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Im glad your getting some value from my videos.. There is no mathematical system for getting in and getting out.. you cannot predict the future, so thats why I layer in my trades.. Who knows how far it will drop.. but it will bounce back to the base that was cracked, so anywhere just under the base is a great place to take profits.. now there is a little more info that can help you predict where to enter and exit.. and thats volume and tape reading.. but ill get to that in another video..

Much appreciated Luc. Makes a lot of sense.

Do you use the same method for trading low volume coins? And do you use sideways base(like trendlines serving as support) if the coin is in a longterm uptrend/downtrend, or are these not fit for this method?

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I dont use the same method for low volume coins.. low volume coins are soo bouncy that you can just try to buy the lows and sell any pop.. its not the same, but since the volume is low you can only take small positions, so there isnt much risk (or profit).. and no I never use trendlines.. never

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I would be great if you explained this strategy in your videos :)

Hi Luc! A thousand thanx for doing these videos. A quick question. Do you think USDT/LTC (PLNX) is forming a base right now around 49,3 ? :)

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yes, that is a great base you spotted.. if that cracks, would make a nice trade,..

Can I ask you trading guys what are your main sources of crypto news? I can't even seem to find the news of XST being delisted from Bittrex, so I feel like I'm living in a cave here:)

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In Coinigy there's notes flashing by all the time. Very handy! :)

And don't what?

Did the end of your post get cut off or something?

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sorry, im not sure what your referring to ??

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The end of your post seems like it's cut off to me. Or am I missing something?

"I love to hear everyone making good safe trades. And don't

Luc"

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oops your right.. gah.. nice catch, i hadnt noticed.. ill go edit it

From the two points you listed where you talked about keeping the bases at the bottom of big bounces.I'm a bit confused what kind of bounces you were referring.Is it the upward trend (which is an indication of people buying ) or a downward trend ( when people are selling).Also what kind of surprise were you talking about.I'm really following your training sessions.I would appreciate a clarification on this.Thanks

Quality stuff again. permission to share on facebook group?

Thank you so much Luc for these amaaazing videos!! I think I am able to spot the bases pretty accurately now but have some confusion around understanding the profits.

For example, if I see that there is a base crack for STEEM/ETH, I can buy STEEM using ETH and sell it when it eventually comes back to base or goes over it. but what if the price of ETH also goes down and up during that same period? wouldn't that affect the profit margins as well or am I missing something very obvious here?

Thanks!

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You really have to go back and read the chart for the Steem/ETh pair and see if every crack gets a bounce.. If they would have all worked out, then you can feel confident that this next trade will too (regardless of what ETH is doing)

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Thanks for the reply :)

Luc what's going on with bitcoin and Eutherium? Looks like correcting up to below the bases I thought were there?

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Trust me, Im watching things closely tonight.. ETH is just starting to crack a base.. I really hope there is some panic, so we can get an awesome trade

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Luc, in the attached picture, do you have the same 'bases' as I have marked?

I know in your last video, you mentioned that what matters is the most recent base. If I have those two bases in the attached pic, would it make sense to still consider that first base I have marked(farthest to the left)?

https://www.coinigy.com/s/i/59602cc774572/

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I dotn trade on bitfinex but yeah those are the bases, however you there is a new one you didnt mark.. that last low bounced back to your previous base, so it now is the newest base..

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Updates on that series for anyone who was following along. A few nice panics followed by retests:

https://www.coinigy.com/s/i/59606d393dffc/

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thanks for sharing, pelt.

Hi Luc . Thanks again. I have a question. How to differentiate if there is a panic or a trend. First I'am using 1H bar chart and 1 month to recognize the Main Bases. One bar is clear, but what about if the price falls at the same level in about 3 bars and there is a little mini support in the first bar. It is a bit complicated cuz sometimes price return to the main level (100%) or a bit lower (80%) and other cases the price can't pass the mini level (into the panic) so I put more money at the bottom to get a lower average price. Thanks for any help and thanks again.

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If your working on a one hour bar chart, you have to read the history of the chart.. How far does a panic typically fall? whats the longest panic you can see within 2 months back? is your present dip/panic anywhere near that deep a fall? those type of questions will guide you to get in a the right spot and not too early

Hey Luc!! This video was absolute GOLD. Thanks so much!! Please know that we that are taking this stuff seriously love them long videos. The longer the better, this is a topic that IMHO I think one should not try to condense into a small package, we really appreciate every word you say so please know we love this type of format of long videos, its like taking a class at university from our favorite professor ;). Much Love my friend! God bless you!

I consider this video a masterpiece. Step by step Luc teaches us how his method works. Easy to understand and start applying the procedure! Congratulations, Luc! Thank you very very much!

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Wow, you are too kind. But thank you for letting me know you appreciate what im trying to do for traders..

Ok, this explains clearly how your bases work. I haven't yet found out how your safe zones work (6+ videos watched).
Can you put up a video explaining your safe zone circles?
You have a LOT of videos in your back catalogue.

I'm excited by your method and am interested in your scanner idea. Being a programmer as well, I might give it a go. Potentially by extending a trading bot so that instead of trading it gives alerts on criteria...

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I will try to put in those safe circles in every post, it seems to help everyone visualize the trade entry better...

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I don't know if this will help you, but I find it easier to use the ellipse drawing tool for safety circles> It is easier to see for me than using the brush (which is what you use). To draw in bases I use the trend line instead of the brush as well, I added arrows and made the lines thicker in yellow to make it clear to me that this is clearly a base.

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thanks for the ideas.. i just tried that ellipse tool.. i might use that.. i like the highlighted circle

Hey Luc, How long shuld be a base line? Is the following a baseline? Is there a crack afterwards?

Here you can see the whole month:
![baseline-1.PNG](https://steemitimages.com/DQmQx8iftFW6xo9aUbvbEyBi8ucoUsaiBw5dWWazhQNpGLj/baseline-1

When I zoom it. It seems like this:
baseline-2.PNG

hey luc! thanks a lot for YOUR explanations, they are on of the best i have ever seen, so that even new people start to understand everything. i really appreciate the time you take for us, even though you probably dont need to :)

Hey Luc,

I came across your videos last night and I've started going through them. Thanks so much for your help, I'm planning on trying your method soon. I had two quick questions:

  1. When determining your base, what % in price change do you look for to consider something a bounce? Is there a minimum?
  2. You mentioned putting in a purchase order when the price cracks the base, but you also mention that the base is constantly changing. As a person who wants to do this casually (still working my day job) what's a good system to place the purchase orders, but also make sure that they're up to date? It seems like in the video, some of the charts changed within a span of a few hours.

Thanks for the help!

Hiya, Luc!

What do we do when we've had a significant bounce, drawn the base...and then the price plummets anyway? I've attached my chart.

Am I misreading this? Was that bounce after base 3 not strong enough?


After some thought, I'm going to try to answer my own question. Maybe you can tell me if it's right.

The issue with price breaking below base 3 is that, yes, it did "crack"...but the DROP was not steep. Instead, it broke the base 3 support barrier a little and then kept bouncing around. This should have made me cautious that the price may continue to drop, as it in fact did. For me to be confident that I have a real crack, the drop should have been DRAMATIC, meaning the buyers will freak and struggle to restore it to its previous base.

Is that right?

But note I'm still unsure how to read the rightmost part, after base 5.