Technical analysis of the financial markets support and resistance strategy is one of the easiest, useful and a very common Forex strategy that traders, professional and new uses around the globe and it is very easy to understand and very easy to work with this strategy while trading.
Technical analysis of the financial markets support and resistance strategy
You all know about support and resistance levels and you may know that levels are where the price loses its momentum and change its direction.
And these levels are a very useful and good level for the traders to trade on. And we will try to teach you these levels and its pullbacks
The Support and Resistance Forex Trading Strategy
So We all know one thing common about the Forex market and the price action, if you want to guess the future of the market you must know about the past of the market.
Thus Taking this idea on the real chart is called the support and resistance levels. By these level we can easily make analysis and trade on the present and guess the future of the market.
Every trader knows that none of the strategies in Forex are as perfect to give 100% result but we try our best to make them work more.
Different trades on support and resistance line
1. The first example that we are looking for is 3 touches or pullbacks in a row on one resistance line.
It is the best opportunity for the trader to trade on all three pullbacks while the prize does before changing its direction.
The first arrow that we see is where the price changed its direction on the support line.
it is a very good trade the price is moving uptrend very strongly if we take the trade.
Our Stop loss will be 50 pips below our entry point, take profit target will be 50 pips, another 50 pips and 100 pips will be our target on the last.
We will have three targets 50 pips of one trade, 50 pips of another target and 100 pips on the last target.
And you can clearly see our trades and our targets, how we entered the trade, and how we took our 3 targets.
You may think about our targets, we managed them by the previous support and resistance zones which you can clearly see on the chart.
Now you can see our entry points where we entered the trades, obviously on the pullbacks.
It was a long term trades and in the next example we are going for the short term trades which is only 50 pips per trade.
Here is a short term trade
short term trade is easier and safe then the long term trade. It has less risk of losing too much money
You trade on the pullbacks, once you have seen the price is changing its direction you wait for the pullback.
Once the pullback is completed you enter in the trade Boom.
You set proper risk management, 30 pips of stop loss and 50 pips of taking profit.
once you have reached your target of 50 pips you jump out of the market with the pips and you wait for the next trade or pullback
Technical analysis of the financial markets support and resistance strategy, It is a very easy everyone can understand, everyone can trade with for more easy and profitable strategies visit our site Techzeer.