How do you use LizardTrader indicators to buy support and sell resistance? This is a question we often get following our partner webinars with Shark Indicators. We’ve now created a tutorial video showing how to do this. Specifically, the tutorial will show you how to locate reversal patterns at key support and resistance using the Auction Bars and Daily Pivots. If prices move in on yesterday’s high / low or on Daily Pivot levels, and we see a reversal pattern, a trade setup is evaluated.
Other Concepts Discussed:
We also show how a moving average can be used to filter out situations where prices oscillate around key support / resistance. Basically, we’re looking to associate a clear move towards support / resistance with a definitive price rejection, before considering setups. Finally, we use a time session solver to define the times where setups are shown.
In verifying the setup, we also create a timed exit to establish a cause/effect relationship. We do this to review the predictive quality of the setup. The purpose is to show a clear connection between reversal patterns at key support / resistance and later price movement.
Although not discussed in this video, additional support resistance levels may also be added to this concept. For example, our premium trading templates also include previous VWAP levels and various Auction Ranges.
The original webinar recording on creating robust trading systems can be found here:
