Treat Support Resistance Level
Understanding is the basic requirement we should have to do the thing right in every field of our lives. With our good understanding, we would be able to make good plans and precise actions. Our anticipation would be more effective too once we catch the understanding on our hands. To develop our ability and to deepen our understanding we could get help from any available free tutoring program. We could do that also by reading books or any source to sharpen our analysis and in this case support resistance level. We could also get online help from the expert about forex technical analysis. The technical analysis is useful to make considerations for our next step in trading.
We can use these support resistance levels as breakout and bounce trading strategies. See picture below :
Identifying Valid And Strong Support Resistance
Trading currencies can become a very difficult job to do. There are times when we have our strategies nicely set up then suddenly the political condition bothers the market. Our trading then becomes a harsh rush of money-saving action. To make some anticipation we should understand the ups and downs of the thing we trade. We should understand also that there are some important levels to indicate our trading movement.
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There is support and resistance in our trading. There are some important steps to make if we want to trade our support and resistance in the forex. We should wait for any price action that would pass through our previous support or previous resistance for some stages that we determine. Then we should place a stop loss in our desired amount or we can learn about basics stop loss strategy. To maximize our gain, we should know the strategies we are about to use to get out of the market when we need to.
Identifying strong and valid support resistance levels is only by reading based on the big time frame, at least four hours and better on a daily time frame. The best trade setups from this support resistance strategy are in these 2-time frames. See this price action setup video below and how to get valid signals based on multi-time frame analysis and combine it with support resistance levels.
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Strong support resistance level predicted without any support resistance indicators in MetaTrader 4, but only from reading how much trying of rejection level, at least more than three times or more would be better by seeing this support resistance level from right to left from our charts. Usually, we set take profit or exit market based on support resistance from the h4 and d1 time frame.
My recommendation about this support resistance strategy and combine it with some price action trading setup-based candlestick basics by seeing from the great mentor that mastering forex basics from only reading candlestick patterns. Just see and learn from this great video tutorial in candlestick basics that you can search with the keyword “Secrets To Becoming A Samurai Trader, Steve Nison” on YouTube. There are 2 parts from Steve Nison’s candlestick tutorial and of course about how to read support and resistance levels and false breakouts so we can understand false or true breakouts from our support resistance levels. It becomes more accurate in getting forex signals. This accuracy is more than eighty percent. Or you can read about this support resistance trading technique with some support resistance indicators here.
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How to Detect False Breakout
How to Identify and Trade High Probability Zones
How to Identify Support Resistance Zones In The Chart
After understanding the way we trade from this support and resistance explanation we should get more accurate on entry and exit points in our trading decision in the forex market, and it is the way we do in our trading activity, of course, this strategy of support resistance would be a lot easier and still add with volume indicators as a filter. We should also made to understand and use the high-low forex system. The previous high and the previous low are two things to determine our support and resistance. Yes, it could be concluded that almost every new high or new low based on a wicked is a new level of support resistance. Read more about tips for scalping trading forex-based support resistance levels in the next article.