a widely used trading system based on the horizontal levels of support and resistance. A good example would be the following chart below of the AUD/USD on the daily time frame Price approaches the level with some volatility, as there are solid moves on both sides of the fence with bears maintaining control on the way down. Can you guess what happened when it got there again? Keep in mind, this is the effect of how players responded to the level, not the cause. Take-profit can be set relatively to the stop-loss or as a trailing stop of some sort. Take profit target levels should aim for the resistance levels above. Click Here: Free Forex Trading Signals Share this support and resistance forex trading strategy with your friends by clicking those buttons below. Currency Pairs: Any Indicators: no forex indicators required Anything Else?: The use of bullish and bearish reversal candlesticks can enhance your trade entry signal.
Forex strategies support and resistance
These levels are formed by the candlesticks' highs and lows. To learn more, checkout this lesson. Or, you look to buy the support of the range. Stepping swing point levels in trends. This depends on what time frame you use as well, larger timeframes may require a larger stop loss. What Each Variable Communicates Although I could spend an entire treatise writing about all the things each variable above communicates, I will go over the key points here. Corrective moves in the market. That means I do not consider a resistance level to be one price, but likely several pips on either side. These will often present great opportunities to get in with trend.