Support & Resistance Lines ( S/R Lines )
Support & Resistance Lines ( S/R Lines ) are horizontal lines connecting at least 2 previous HH or LL of PA on the chart.
To draw S/R Lines we can use HH/LL or close price, as our R Line from the chart above.
The common mistake of trading these S/R Lines, is to consider them ...lines. S/R Lines are actually Zones.
Normally second R Line is a LH on the chart ( is a resistance when we connect at least 2 previous HH/LL ).
In this example using zones, we could connect our second R Line with previous LL/HH. ( since there are sometimes 10p-20p difference, between those levels ). Using only a line we can't connect them properly.
Every broken Support, becomes Resistance and every Resistance broken, becomes Support.
There are many ways to trade S/R Lines.
1. S/R Lines BO Strategy.
After a candle broke a S/R Line and close below you can entry on the next candle opening, with a SL above the candle's high ( our example is a short one ).
For TP you may use Trailing Stop, BE ( moving SL after each further BO ) or find the next Support Zone pullback. ( rejection ).
2. S/R Lines Pullback Strategy ( rejections )
If you look carefully at our previous chart, you will see that was a false BO of the S Line on the bottom of the chart. If we would of drawn a Line, we might of trade it as a BO of S Line.
But since we've considered a S Zone ( connecting the last previous low and the last one ), we look for a candle to close above to entry. ( rejection )
3. S/R + TL BO Strategy
An interesting idea of trading S/R Lines is to combine it with TL.
For trading it like this all we have to do is to lower the TF ( we used H4 and now we entry on H1 - for proper entry and a tight SL ).
4. Pending Order @ Retest previous BO of S/R Strategy
This is one of the best and yet simpliest trading strategy I've ever found.
Ypu can use pending order for this ( after previous BO ), or use rejection from R Zone.
Your SL would be @ new formed HL. For TP you can use previous LL, BE or Trailing Stop.
Best Regards,
^^_Lord_Ice_^^
To draw S/R Lines we can use HH/LL or close price, as our R Line from the chart above.
The common mistake of trading these S/R Lines, is to consider them ...lines. S/R Lines are actually Zones.
Normally second R Line is a LH on the chart ( is a resistance when we connect at least 2 previous HH/LL ).
In this example using zones, we could connect our second R Line with previous LL/HH. ( since there are sometimes 10p-20p difference, between those levels ). Using only a line we can't connect them properly.
Every broken Support, becomes Resistance and every Resistance broken, becomes Support.
There are many ways to trade S/R Lines.
1. S/R Lines BO Strategy.
After a candle broke a S/R Line and close below you can entry on the next candle opening, with a SL above the candle's high ( our example is a short one ).
For TP you may use Trailing Stop, BE ( moving SL after each further BO ) or find the next Support Zone pullback. ( rejection ).
2. S/R Lines Pullback Strategy ( rejections )
If you look carefully at our previous chart, you will see that was a false BO of the S Line on the bottom of the chart. If we would of drawn a Line, we might of trade it as a BO of S Line.
But since we've considered a S Zone ( connecting the last previous low and the last one ), we look for a candle to close above to entry. ( rejection )
3. S/R + TL BO Strategy
An interesting idea of trading S/R Lines is to combine it with TL.
For trading it like this all we have to do is to lower the TF ( we used H4 and now we entry on H1 - for proper entry and a tight SL ).
4. Pending Order @ Retest previous BO of S/R Strategy
This is one of the best and yet simpliest trading strategy I've ever found.
Ypu can use pending order for this ( after previous BO ), or use rejection from R Zone.
Your SL would be @ new formed HL. For TP you can use previous LL, BE or Trailing Stop.
Best Regards,
^^_Lord_Ice_^^
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