Support And Resistance Forex Trading Strategy

Support And Resistance June 07, 2019 (0)

Horizontal support and resistance forex trading strategy is one of the most popular forex trading strategies used by many traders all over the world because its based on solid trading fundamentals of support and resistance.

HOW TO FIND SUPPORT AND RESISTANCE LEVELS

Regardless of what timeframe you use, whether it be 1min or weekly, you will see:

  1. where price has moved up, hit a resistance level and reversed from
  2. or price has moved down, hit a support level and bounced back up from.

Those are the very basic ideas of support and resistance.

So if you don’t know how to find support and resistance levels, the following steps will help:

  1. Look at the chart
  2. Look for a series of low points where price does not fall below this any further, this is your support level.
  3. Look for a series of high points where price does not rise above this any further, this is your resistance level.
  4. The more price bounces off this support & resistance levels, the stronger these levels become
  5. So next time price comes this level, expect it to bounce again like it did before.

That’s very easy to understand.

Timeframes: any but preferably 15mins and above.

Currency Pairs: Any

Indicators: no forex indicators required

Anything Else?: The use of bullish and bearish reversal candlesticks can enhance your trade entry signal.