My support and resistance areas work around 60% of the time, according to tested data on the Trading Rush channel.
But they only get a high win rate when I draw the strong support and resistance areas, which are clearly visible on multiple time frames.
But when I was a beginner trader, I used to draw support and resistance like this.
I used to draw them on every swing high low, and they used to look like a mess.
These support and resistance areas are bad and will definitely get a lower win rate.
You will most likely lose money with them.
But the thing is, it’s very easy to draw these messy support and resistance areas.
If you stare at the chart long enough, you will see things that are not even there, and you will end up drawing support and resistance at every swing high and low.
So, I want to show you the blink method, or the blind method, of drawing support and resistance that actually gets a high win rate.
It’s a really simple three-step method to draw strong resistance and support in just a few seconds.
Step one is to zoom out of the chart as much as possible.
The idea is to ignore all the small movements and just look at the big picture.
Step two is to close your eyes.
Imagine that this white background represents you closing your eyes.
Then you open your eyes for a split second or two, and then you close them again.
Basically, when you open your eyes for a split second, you end up looking at the overall price movement instead of the details.
I am going to show you the chart again for a split second.
This time, your job is to identify the extreme reversal points, like the areas where the price didn’t go further in that direction.
Remember, just identify where the price didn’t go.
Identify the edges of the price movement.
Here is the chart.
Based on what I saw, the price didn’t go above this area somewhere around here.
And on the bottom side, the price didn’t go below this area.
So, what I’m saying is the top area I drew is the resistance area, and the bottom area I drew is the support area.
I didn’t see the price going above the top area, and I didn’t see it going below the bottom area, for the most part.
So, let’s see if we were right.
As you can see, by taking only a glance at the chart, we have identified the resistance and the support pretty clearly.
Since we couldn’t see the details when we opened our eyes for a split second, we didn’t end up drawing a messy-looking chart.
We only drew the extreme points, and those extreme points actually give a high win rate.
The third step is to draw the identified support and resistance a bit more properly.
Refine it and make small adjustments to it now that you can see the chart.
And just like that, with just three steps, you went from a messy chart that doesn’t work to a much cleaner chart that will actually get a higher win rate.
That’s my blink or blind method of drawing support and resistance areas that actually gets around a 60% win rate, according to tested data on the Trading Rush channel.
Thanks for watching.