Support and Resistance Strategy

Maybe because I’m a FOREX trader, it helps to explain why the Resistance Stands Strategy is one of the ones I use most.

Use if the market is in a neutral trend.

Or outside the hours of important news that can create volatility and sudden changes in market direction.

The Resistance Holders Strategy is widely used in the Forex and Stock markets. We can get very interesting results if used well.

There are several Robots that use brackets and resistors.

This strategy should be used according to the following criteria:

1 – Neutral Trend –

When the market shows a neutral trend it is usually because it moves within a tunnel.

In this tunnel, the lowest point is delimited by one support or resistance and the highest point by another support or resistance.

Usually this trend happens outside of the peak news hours and outside the most volatile times.

Or when the market comes from a height of high volatility or awaits important news.

In the image below you can identify what a neutral trend is.

2 – Platform –

In order to use this strategy Strategy Media Resistors must have a platform on your computer.

I use MT4 which is a very used platform in Forex by most Brokers.

Simply open a Demo Account on a Forex Broker and then download the platform software. It is completely free.

3 – Time Bars –

I use for this strategy 15 minute candles.

You can try 5 minutes or longer as 30 minutes and 1 hour.

You should keep track of the platform sails with the negotiations.

That is, if using the 15 minute bar / candle, open a 15 minute trade.

It is important to do several experiments because the effectiveness of this strategy varies from active to active.

Some work better with shorter time intervals, others with longer intervals.

Some of the assets that work well with this system are: USD / CHF, EUR / USD, EUR / CHF, USD / CAD.

4 – Supports and Resistance –

Holders and resistors are prices of an asset where there is a resistance to exceed this value.

There are indicators that calculate daily resistances and supports for each type of asset.

The distance between the supports and the resistances varies from day to day and has to do with the variations in each asset on the previous day.

Normally pivots, resistances and daily supports are calculated and modified at midnight Broker time.

When the market is in a neutral trend these supports and resistors usually prevent the price from exceeding them, causing the price to reach this value and then back again.

This situation sometimes lasts most of the day which allows you to make huge trades with a very high profit trading percentage.

5 – Indicator –

I use a paid indicator that calculates the daily pivot, supports and resistances according to the Fibonacci.

For those who want to try this strategy the ideal is to take my course.

I offer the indicator, I teach the Resistance Supports Strategy , and others.

How to use the Resistance Stands Strategy:

Once you have the MT4 platform installed on your computer.

Install the Bookmark that I make available.

You have to identify whether a particular asset has a Neutral trend (see image at the beginning of the article).

Use the 15 Minute Bars / Candles (or whatever you want).

When the price of the asset hits a resistance a PUT or Low / Low trade should be opened.

This is because that price “keeps” the value from continuing to rise and is more likely to fall on the next bar / candle.

If the asset price goes down and hits a support then you should open a CALL or High / High trade.

This is because the price “keeps” the value from continuing to fall and will likely rise on the next bar / candle.

Be aware that the times when this strategy works should be out of important news output.

To control the news coming out use this  Site .

Adapt the time of the site to that of your computer so that when breaking news (with the red icon) you are not using this strategy, you can use this strategy instead  .

In order to make the entry (trade opening) as perfect as possible you can use, in addition to the indicator that makes the resistors and the supports, the Stochastic to assist in the entry points.

When you find that the price is nearing resistance or support, look at Stochastic and see if it is running out (over 80 or under 20).

If this happens the probability of success increases even more.

Below is an image that demonstrates some of what was explained from the Resistance Supports Strategy.