Trading with the Twin Range Filter Indicator and the support and resistance strategies.

Greetings dear friends, I welcome you all once again to another episode of my blog. Last time I discussed the twin-range filter indicator and I stated clearly how this indicator helps to provide signals to users as to when to enter a long or short on a trade.

As we all know, I have always emphasised that the indicators should not be for any reason used as stand-alone tools because most times they give false signals. As a good trader, you need to see confluence before entering a trade.

I have also stated that you add two or more indicators or strategies or patterns to confirm your entering before taking the trade. When you see this confirmation, you can then conclude that you have confluence on the trade and it becomes a more reliable signal for you.

In this article today, we are going to be looking at the bullish market and the bearish market i.e. longing and shorting the market using the confluence i.e. the indicator and the support and resistance strategies. With both signals in place, we will have a more strong and reliable position.

Longing the market using the Twin Range Filter Indicator and the support and resistance strategies

To long means to buy in the financial market. I said this because it is the same terminology used in crypto and forex. Buying the market means your prediction as a trader is that the price of the asset will move upward.

This means that every trader seen longing or buying the market has to analyze and predict the price of the asset at the point in time should go up. Our predictions are not always right and that is why we lose money in the market.

From the image above, we are buying BTCUSDT in a 1H timeframe using this confluence i.e. the Twin Range Filter Indicator and the support and resistance strategies. The price as you can see is already in the support level.

It is a strong level which based on my prediction price is expected to bounce back upward. Prices at major support levels if not broken always reverse in the opposite direction and that is exactly what we are seeing here today.

The price hit strong support and then reversed which is the first confirmation that the trade will go bullish, then The twin range filter indicator also gave us a long signal after the formation of the first bullish candle as seen on the chart.

With both confirmations on the chart, you can take the buy entering as I have done on the trade and you can see how it pays out above.

Shorting the market using the Twin Range Filter Indicator and the support and resistance strategies

To short means to sell in the financial market. I said this because it is the same terminology used in crypto and forex. Selling the market means your prediction as a trader is that the price of the asset will move downward.

This means that every trader seen shorting or selling the market has to analyze and predict the price of the asset at the point in time that should go downward. Our predictions are not always right and that is why we lose money in the market.

From the image above, we are selling BTCUSDT in a 1H timeframe using this confluence i.e. the Twin Range Filter Indicator and the support and resistance strategies. The price as you can see is already in the resistance level.

It is a strong level which based on my prediction price is expected to bounce back downward. Prices at major resistance levels if not broken always reverse in the opposite direction and that is exactly what we are seeing here today.

The price hit strong resistance and then reversed which is the first confirmation that the trade will go bearish, then The twin range filter indicator also gave us a short signal after the formation of the first bearish candle as seen on the chart.

With both confirmations on the chart, you can take the sell entering as I have done on the trade and you can see how it pays out above.

Conclusion

From both examples we have seen above I.e the buy and the sell of the pair of BTCUSDT on a 1H timeframe, we will notice that we had a confluence for the trades which made us confirm all the entries. The take profit may be in the next resistance or support level for the buy and sell respectively.

It is always wise to use a little risk and that is the reason you have seen my stop-loss immediately below the first bullish or bearish candle before the signal came in. You can minimize your loss that way by doing the same or you keep it above or below the resistance or support level for sell and buy respectively.

I want to believe we have gotten an idea as to how we can use these tools to trade the market more accurately. If you have any questions or contributions, please use the comment section of this post below.

Disclaimer: ^{This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your research and consult a financial advisor.}

NB: All images except otherwise stated are mine and taken from tradingview.com website