Bouncing Between Support and Resistance: A Simple yet Effective

22 окт.

This straightforward approach leverages the fundamental concept of support and resistance levels to identify potential reversal points. By drawing these key levels on the chart, you'll visualize the trading range as a "floor" and "slab," similar to a ball bouncing within these boundaries, same work candles do between support and resistance

Case Study: GBP
Observing the GBP chart, we notice three instances of instant reversals occurring at resistance levels and five at support zones. This illustrates the strategy's potential effectiveness.

Trade Entry Guidelines:
To minimize losses, consider the following entry rules:
1. Sell Signals: Enter short positions when the trend approaches resistance levels.
2. Buy Signals: Enter long positions when the trend approaches support levels.

By employing this strategy, traders can capitalize on predictable price movements and maximize profits.