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Supports and resistances are one of the most popular price action methods, which have been the basis for a plethora of trading strategies that can be said to influence the overall events of financial, commodity, stock and other world markets day after day.
Today's S/R strategy for change is also one of them, it leaves nothing to chance and therefore it is also possible to achieve really great results in the long term.
Strategy entry rules (example)
Entering long positions
- Creating two peaks on the same S/R
- S/R breakout
- Hitting the S/R from above and making a double bottom
Entering short positions
- making a double bottom on the same S/R
- breaking S/R
- Hitting the S/R from below and creating a double top
How to trade with S/R for change and repeated hit
First of all you need to wait for the S/R level to form with the help of either two consecutive tops or conversely two days (see points 1,2 on the chart above/below). Then the market needs to break the S/R level and then form either two consecutive bottoms or tops (see points 3,4 on the chart above/below). With point number 4, the entry into a trading position finally occurs (Long entry when point 4 is a potential new low, short entry when a top)
With today's trading strategy it is possible to achieve success rates in excess of 60% over the long term and with selected currency pairs.
