# Support and Resistance Miniseries – Part 4

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[00:11] – Welcome to the last Support and Resistance Video of this miniseries, and Video #12 of our ‘Forex Trading Training Series’, brought to you by ForexMinute.com.

[00:26] – In this Support and Resistance Miniseries. I have taught about Support and Resistance; I have given an introduction to Support and Resistance; and I have covered Horizontal Support and Resistance, Dynamic Support and Resistance, and Channel Support and Resistance. In this last video, I will cover Trend Support and Resistance.

[00:52] – Going back to a slide that I have used in a couple of these Support and Resistance videos, this illustration will help us to understand Trend Support and Resistance. This illustration demonstrates the concept of Ceilings becoming Floors, Resistance becoming Supports; or vice versa – Supports becoming Resistance, Floors becoming Ceilings

[01:19] – Trend Support and Resistance is used in a principal that support and resistance areas are created at the end of pushes, and at the end of pullbacks. Soon we have a high and low of trends; we have a support and resistance area created. This Support and Resistance is considered more minor Support and Resistance, when compared to more Horizontal Support and Resistance, Dynamic Support and Resistance and Channel Support and Resistance. But nonetheless is worth covering and it does work.

In this illustration, we have a downtrend; a push; a pullback; a push; a pullback; and so forth. At the end of every push and sideway pullback, we have a low if we mark that low as a Support. When we go for other Push and this Low is broken, then Support will now become Resistance, and connect as the reversal point of the next High. Price then pushes, breaks the Support created at the Low which then acts as a Resistance, and a reversal point for the next High. Sometimes these Lows are not broken; the Resistance on these Lows, and that’s where we get a Trend Reversal.

Obviously we could have an uptrend, where we would mark Highs which could act as reversal points for the next Lows once the HIGH has been broken. As always I would demonstrate this on Real Life Price Chart.

[03:23] – This is a daily chart of the Euro against the Japanese Yen. We have a clear downtrend, a push; a pullback, a push; a pullback; a push; a pullback; and a final push before this High is broken and the downtrend is over.

If we mark the first Low of this downtrend, which is here; price pulls back, we have a high; price breaks the low; and then we pull back this Support and Resistance rejects price, and price soon goes on the downside. If we mark our next Low, which is here, this Low is broken as price goes further Push. Or in other words, our Support is broken as price goes for another Push. When price pulls back, once again we have this clear rejection and nice large Pin Bar and price reverses. This is a daily chart of EURO, JAPNESE YEN. Let us look at a 15 Minute Chart of the Pound against the US Dollar.

[05:07] – On this chart, the same principal is demonstrated. We have a clear downtrend; we have a Push; price then pulls back; we mark this Low as a Support; the support is broken; price pulls back; the support is now resistance. We have a large Bearish Engulfing just here, and price goes for another Push. It is as simple as that.

And this actually was yesterday’s trading. This is today’s price action. So if we were trading yesterday and knew about Trend Support and Resistance, we could have made a nice profit as we shorted this Engulfing Candle and followed a price down.

[06:04] – In summary: Trend or High / Low Support and Resistance is more ‘minor’ compared to other Support and Resistance taught in this series. But as always there is great power in Support and Resistance.

Our next video is about Moving Averages. It will be video number 13.

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Jonathan Millet is currently the proud CEO of ForexMinute.com, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers. He also holds the position of Binary Options Consultant at ForexMinute.com. Before ForexMinute.com was around, Jonathan was a successful Forex dealer and chief market analyst at Forexyard. He has also worked as a Forex trader. His other specialties include advising financial companies of how to stay head of the competition.