Forex Support and Resistance is the Easiest Strategy in Forex Trading

[moonchild]

Support and resistance is the easiest strategy you can learn if you are just starting or you're looking for a strategy to start using in your trading, it simple and self explanatory without much bluff, all you have to do is buy at support and sell at resistance, easy peasy.

To identify a support zone, you'll notice that price can't seem to break a level to the downside and it kind of bounce, that's an example of a support zone and for resistance any level that price cannot penetrate is a resistance zone to the upside.

All you have to do is buy at support and sell at resistance and then manage your risk by not betting your while account.

 

[Carson20t]

Thank you for sharing, does that mean that you can still be a profitable trader by using that simple strategy without littering your charts with so many indicators which can even make you more confused? I am also an advocate of keeping it simple. Having a pure price action or naked chart gives one more advantage. I have been working on a profitable strategy where you just get to mark the highest and the lowest points on the charts for the pair that you have chosen. Get to analyse the market and determine the direction of your trend, make the analysis and pick the entry point, stop loss and take profits beautifully just like that. Only backtest when necessary but generally only concentrate on the highest and lowest points on one trend. Without all the complicated Bollinger bands and Fibonacci indicators etc.

We really should not be making forex trading very complicated. we just need to keep it simple just like that.

 

[FinTrader]

In my trading, I also use support and resistance levels to determine market entries. I also use slanted channels and trend lines to see the direction of the trend. This allows you to make trades with a very small stop loss when trading in the direction of the general trend.

 

[FXOchartist]

In my opinion, support, and resistance are price zones where in this zone rejection often occurs, the more often rejection occurs indicates the strength of the support and resistance zone. Although support and resistance values can be described in various ways, there is no definite price at this point. By looking at support and resistance zones may reduce analysis bias.