Support/Resistance trading strategy based on support and resistance levels

Very simple Support/Resistance trading strategy on the basis of one indicator, which can be used as a part of any other, more complex system. Support/Resistance trading strategy is discussed at forexfactory.com in on this topic.

Input parameters

• Currency pairs: any.
• Timeframe: any.
• Bidding time: any.
• Risk Management: After calculating the stop loss, choose this lot sizeto risk no more than 2-5% of the deposit per trade.

Setting up the price chart

• Unpack the archive.
• Copy the template into the templates folder.
• Copy the indicators to the folder MQL4 -> indicators.
• Restart the terminal.
• Open the chart of the desired currency pair.
• Install a template named SupportResistance.

The schedule should look like this:

Signals indicating the opening of a long position (buying)

• Formed level of support.
• The price has tested the support level at least once.
• The price pushed back from the tested support level.
• The stop is placed just below the support level, on the rebound from which the position was opened.

Signals indicating the opening of a short position (sale)

• Formed resistance level.
• The price has tested the resistance level at least once.
• The price pushed back from the tested resistance level.
• The stop is placed just above the resistance level, on the rebound from which the position was opened.

Often a support level can act as a resistance level (and vice versa). Also, levels can continue to be important even after a breakdown.

The Support/Resistance trading strategy is quite simple and easy to use, so it will not cause difficulties for beginner traders. In addition, it will be very useful for beginners, allowing them to improve the skill of trading from important technical levels.

Download Strategy Template and Indicators

Other popular strategies