The support and Resistance foreign exchange trading system is a broadly utilized trading system that depends on the horizontal levels of support and resistance. These levels are created by the bars’ highs and lows. An opening through of these levels after a span of fortification provides a momentous for a trend. This trading strategy does not depend upon and diagram signals with the exception for the endowment to construct lines (at least imaginary).
- Well determined stop-loss.
- Comparatively high rate of favorable outcome.
- Confusing aim levels.
How to Exchange
- Support level is created by the lows of 2 or more candlestick uneven bars that create a fairly continues horizontal line with no lower lows in the midst of them.
- Resistance level is created by the highs of 2 or more uneven bars that create a fairly continues horizontal line with no higher highs in the midst of them.
- Consolidation is a timeframe without any tendency, creating close support or resistance aligned, with the comparatively little candlestick bodies.
- A close beneath the support level forecasts a short position.
- A close higher up the resistance level forecasts a long position.
- Stop-loss is established to the low of the preceding candlestick (for the long positions) or to the high of the preceding candlestick (for the short positions).
- Take-gain can be established comparatively to the stop-loss or as a following stop of any sort.
A time-frame of consolidation is definitely observed on both instance diagrams. In both scenarios the support/resistance level is created by two bars on a fairly short time-frame. Stop-loss is located close to the entry level. Take-gain could not be visibly established at the position entry split second, but a risk/reward rate of not slight than 1:2 could be utilized efficiently.
Utilize this strategy at your own risk. WindsorForex.com cannot be responsible for any losses associated with using any strategy presented on the site. It’s not recommended to use this strategy on the real account without testing it on demo first.