How to trade support and resistance on Forex trading - VeeFx

How to trade support and resistance on Forex trading - VeeFx Now that you know the basics, it’s time to apply these basic but extremely useful technical tools in your trading. Because here at BabyPips.com we want to make things easy to understand, we have divided how to trade support and resistance levels into two simple ideas: the Bounce and the Break. The Bounce How to trade support and resistance using the Bounce As the name suggests, one method of trading support and resistance levels is right after the bounce. Many retail forex traders make the error of setting their orders directly on support and resistance levels and then just waiting to for their trade to materialize. Sure, this may work at times but this kind of trading method assumes that a support or resistance level will hold without price actually getting there yet. You might be thinking, “Why don’t I just set an entry order right on the line? That way, I am assured the best possible price.” When playing the bounce, we want to tilt the odds in our favor and find some sort of confirmation that the support or resistance will hold. Instead of simply buying or selling right off the bat, wait for it to bounce first before entering. By doing this, you avoid those moments where price moves fast and break through support and resistance levels. From experience, catching a falling knife when trading forex can get really bloody… Like, share and Subscribe my channel How to trade support and resistance on Forex trading - VeeFx

Comments

1. Do you advise me i open the sell trade as soon as price reaches the resistance and put the stop loss on top of resistance or wait for bearish candle first? Im afraid if i open sell trade too soon and then price break the resistance and hit my stop loss
   What's ur thought on this?
   Is there other strategy or indicators that can possibly tell u that price is bouncing from resistance or it's breaking it...?