# The Median Significant Trade: Support & Resistant levels

In probability theory and statistics, a median is described as the number
separating the higher half of a sample, a population, or a probability distribution,
from the lower half. The median of a finite list of numbers can be found by
arranging all the observations from lowest value to highest value and picking the
middle one. If there is an even number of observations, the median is not unique,
so one often takes the mean of the two middle values.
For this trade we will use the candlestick plots. The candle is able to show an
opening, closing, high and low of a currency for a given time frame.
In a Bull market Support levels form as the market goes up.
For the Bears to take control of the market levels of support will have to be
broken.
The Bears will always target levels of support.
Support
Support forms at significant lows. Not all lows are levels of support though.
2 types of support:
 Current level of Support
 Past levels of Support
How do we find levels of current support??
Remember that Support forms at significant levels of lows
To qualify as a significant low you need 5 candles:
A low with 2 candles to its left and 2 candles to its right that is higher or
equal to the lowest point of the low candle.
Significant Low:
Remember that support forms at significant lows. But not all lows are levels of
Support and the only two types are current levels of support and Past levels of Support
Also remember that support is significant lows that have not yet been broken and
to find support you go to the current market price and step down to significant
lows. Keep in mind that you may NEVER step up to find Support levels.
For the Bears to score a point they must break a level of support. Most of the
time after scoring a point, the market will pull back (bear take a break) and when
Support levels are close to each other the bears will probably take out both at the same time.
Resistance
In a Bear market Resistance levels form as the market goes Down and for the
Bulls to take control of the market, levels of Resistance will have to be broken.
The Bull will therefore always target levels of Resistance
Resistance
In a Bear market Resistance levels form as the market goes Down and for the
Bulls to take control of the market, levels of Resistance will have to be broken.
The Bull will therefore always target levels of Resistance

Remember that Resistance forms at significant highs. But not all highs are levels
of Resistance and the only two types are current levels of resistance and Past
levels of resistance
Also remember that Resistance is significant highs that have not yet been broken
and to find resistance you go to the current market price and step up to
significant highs. Keep in mind that you may NEVER step down to find
Resistance levels.
Summary:
Bulls want the market to go up. Support forms as market goes up.
Bears want market to go down. Resistance forms as the market goes down.
Question is how do we now use these support and Resistance in trading?
Firstly this helps point out who exactly are in control of the market at any given
time, i.e. Bulls or Bears.
If Support levels are forming and resistance are being broken then Bulls are in
control of the market.
If Resistance levels are forming and Support is being broken then Bears are in
control of the market
If Bulls are in control we want to buy.
If Bears are in control we want to sell.
The Bear Trend:
We know that bears target support and form resistance as they take the market
down.
Question: Where is a good place to put your limit & Stop?
After the support is broken wait for pullback then sell
Remember:
 We know that bears target Support levels.
 We know that levels of resistance form as the market goes down.
 We know that for the bulls to take control they will have to break
resistance…….
Enter at Pullback. (Sell)
The Bull Trend:
We know that Bulls target resistance levels and form support as they take the
market up.
Question: Where is a good place to put your limit & Stop?
After the resistance is broken wait for pullback then Buy
Remember:
 We know that bears target Resistance levels.
 We know that levels of support form as the market goes down.
 We know that for the bears to take control they will have to break
support…….