support & resistance simple strategy-forex buffalo forum
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Support and Resistance simple strategy-Forex Buffalo ForumTRANSCRIPT
Support and Resistancesimple strategy
Forex Buffalo Forum
Support and Resistancesimple strategy
• is a widely used trading system based on the horizontal levels of support and resistance. These levels are formed by the candlesticks' highs and lows. A break-through of these levels after a period of consolidation gives a signal for a trend. This strategy doesn't require any chart indicators except for the ability to draw lines (at least imaginary)
Features• Well-defined low stop-loss.
• Relatively high success rate.
• Unclear target levels.
How to Trade?
• Support level
• Support level is formed by the lows of two or more candlestick bars that form a rather straight horizontal line with no lower lows between them.
How to Trade?
• Resistance level
• Resistance level is formed by the highs of two or more candlestick bars that form a rather straight horizontal line with no higher highs between them.
Consolidation• Consolidation is a period without
any trend, forming near support or resistance level, with the relatively small candlestick bodies.
Close Manner• A close below the support level
signals a short position.
• A close above the resistance level signals a long position.
Stop-loss & Take-profit
• Stop-loss is set to the low of the previous candlestick (for the long positions) or to the high of the previous candlestick (for the short positions).
• Take-profit can be set relatively to the stop-loss or as a trailing stop of some sort
ExampleSupport set-up:
ExampleResistance set-up: :
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