Welcome to another episode of learning. Today in this video, you will learn how to trade on support and resistance. When we talk about breakout trading, how to make money on it. Today you will learn exactly from Ghanshyam sir. So, sir, here we go. Okay, let’s start with our breakout system. How do we follow the breakout? What things do we have to see in it? What things do we have to apply? First of all, I have told you to follow the trend. If you are making 100 amounts daily, then make 100 amounts on the trend side. If there is a breakout against the trend, then make 50 amounts. Remember this. Don’t forget this rule anywhere. Never forget it.
So, what happens with the breakout? First we need a range. Look at the market, what happens every day, the market will not stay in trend. The market does not stay in trend all the time. It gave a trend for one hour. 200-300 points, it went up, it went down. After that, it used to go sideways somewhere. So what do we want? We need a sideways.
In a sideways, there are many positions inside the sideways. There will be buyers and sellers. Both will come with the hope that the buyer will think that if it breaks to the upside, then I will get good money. The seller will think that he will trade with it, that maybe if it breaks to the downside, then I will get good money. But we don’t have to think this. We are option buyers. Because if it ends up all in the sideways, then what will happen? Our premium is gone. So we have to trade on the breakout. When we break that thing or the market breaks to the downside, then we will trade it. So, let’s first understand your stuff. How do we follow the breakout and the downside? Right. You can follow the time frame both in 15 and 5 minutes. No problem. We do it in 5 minutes. So in 5 minutes, we see more candles. Right. So we follow it in 5 minutes. Now, the breakout in 5 minutes.
You see, the Friday session was like this, there I got everything. There I got the achievement of seven. There I got the trend line break. There I got the candle. There I got the support and resistance break. Friday trend was like this, that means there I got everything. Does this happen to you generally? Yes, these things happen to me. I am talking about Friday.
No, no. I mean this Friday happened like this. I thought I have seen in so many years of experience that you get a lot of things on Friday. No, no.
This Friday was like this. This Friday was like this, what is happening and I am telling it to your audience, then it will be reflected in the Friday chart. Because the last chart is from Friday. And everything is happening on Friday. But maybe people are watching this video after many years. So it doesn’t matter you see this chart. You understand the concept. The concept is that it will still happen after 2 years or 20 years. So now that you see here, remember two things. First, when I make support or resistance or follow support or resistance, then, first I delete this chart. Now, here I draw something first. The first thing is that I need the market to be in a range. Now people draw the range of 41,800.
Then we will go only to 41,800. It doesn’t happen like that. The market forms a range.
Now it won’t go to 41,800 every time. Maybe it’s not 800, it’s 780. Maybe it’s 710 here. Sorry, it’s 810. So when do we have to follow? When the market is at least, if you’re a beginner, remember, at least the market faces resistance 3 times.
Before that, you don’t even see it. You’re learning. So go first where there is more probability.
Trade first where there is more probability. When you have 100 trades, as I say, do 100 trades. If you’ve done 100 trades, you can follow 1 and 2, even after 2 resistances. But if you are a beginner then first follow 3. Don’t see that it will take you a lot of time in 3. Maybe it will be done today or not. No problem. If it is not done then take the money and go to the market. The money is in your trading account. We will see when it will be broken. So, here we need support 3 times. And in the same way, if we need resistance 3 times then support is created. So, support will also be created. Now in some cases, resistance is being created and support is not being created.
Such a situation is being created. It went here, then the market went here, then the market went here and then it came back and went here. Such a situation can be created. So what is happening in this case? Suppose a market is creating resistance. Now, there are two types of trading here. Or we have to see that whenever the market comes close to this point, many people say that my breakout has failed. Why does the breakout fail? There are two reasons for the breakout to fail.