Forex - Forex Trading - Currency Trading
  • Forex Brokers
    • Compare Forex Brokers
    • ECN/STP Forex Brokers
    • STP Forex Brokers
    • DMA/STP Forex Brokers
    • PAMM Forex Brokers
    • Metatrader 4 Forex Brokers
    • Metatrader 4 ECN Forex Brokers
    • Metatrader 5 Forex Brokers
    • Brokers With Free Forex Signals
    • Social Trading Forex Brokers
    • Bitcoin Brokers
    • Binary Options Brokers
    • NFA / CFTC US Forex Brokers
    • FSA UK Forex Brokers
    • Micro & Mini Forex Brokers
    • Forex Brokers For Scalping
    • Forex Brokers For Hedging
    • High Leverage Forex Brokers
    • Brokers With FX Managed Accounts
    • Forex Brokers With Free VPS
    • Gold,Silver & Oil Forex Brokers
    • Forex Brokers With Segregated Accounts
    • Brokers With Forex Demo Accounts
    • Best Forex Broker Bonuses
    • Forex Broker News
  •  
  • University
    • Online Forex Trading Course
    • Complete Forex Video Course
    • Forex Trading Tutorials
    • Learn How To Trade Currency Pairs
    • Candlestick Video Course
    • Forex Technical Indicators
    • Forex Chart Patterns
    • Forex Trading Tips
    • Metatrader 4 Tutorials
    • Metatrader 5 Tutorials
    • Free Trading Courses
    • Forex eBooks Collection
    • Forex Freebies
    • Forex Dictionary 
    • Forex Downloads
  •  
  • Trading Strategies & Systems
    • Simple Trading Strategies
    • Forex Breakout Trading Strategies
    • Price Action Forex Strategies
    • Elliott Wave Forex Strategies
    • Fibonacci Strategies
    • Fundamental Strategies
    • Trend Following Metatrader 4 Systems
    • Forex Scalping Metatrader 4 Systems
  •  
  • Articles
    • Technical Analysis
    • Forex Systems & Strategies
    • General Forex Knowledge
    • Forex Money Management
    • Trading Psychology
    • General Trading
    • Forex Trader Interviews
  • Tutorials
    • Trading Tutorials
    • Metatrader 4 Tutorials
  •  
  • MT4/5 Downloads
    • Metatrader 4 Indicators
    • Metatrader 5 Indicators
    • Metatrader 4 Expert Advisors
    • Metatrader 4 Systems
  •  
  • Products
    • FREE Forex Analyzer PRO
    • eToro Social Trading
    • Automated Forex Trading (ZuluTrade)
  •  
  • Charts
    • Real-Time Forex Charts
    • Real-Time Forex Rates
    • EUR/USD Forex Charts
    • GBP/USD Forex Charts
    • USD/CHF Forex Charts
    • USD/JPY Forex Charts
    • USD/CAD Forex Charts
    • AUD/USD Forex Charts
    • NZD/USD Forex Charts
    • EUR/JPY Forex Charts
    • GBP/JPY Forex Charts
    • EUR/GBP Forex Charts
    • EUR/AUD Forex Charts
    • EUR/CAD Forex Charts
    • AUD/JPY Forex Charts
    • CHF/JPY Forex Charts
    • EUR/CHF Forex Charts
    • GBP/CHF Forex Charts
    • USD/SEK Forex Charts
    • Gold (XAU/USD) Charts
    • WTI Crude Oil Charts
    • Silver (XAG/USD) Charts
  •  
  • Tools
    • Correlation Charts
    • Relative Strength Index
    • FX Performance Charts
    • Economic Calendar
    • Pivot Point Calculator
    • Forex Historical Data
    • Currency Converter
    • PIP Income Calculator
    • PIP Value Calculator
    • Risk Calculator
    • Fibonacci Calculator
    • Forex Income Calculator
    • Forex Risk Calculator
    • Banks Interest Rates
    • Movers and Shakers
    • Find A Forex Job
    • Forex Daily High/Low
    • World Clocks
  •  
  • $30 FREE
  •  
Bookmark and Share Print This Page   | Home > strategies > Forex Trading Strategies

Support And Resistance Forex Trading Strategy

Written by Rik Savar

A simple strategy that is based on two trading indicators - MACD with standard settings (12,26,2) and the support and resistance indicator for Metatrader 4 (click here to download).

Strategy Features:

  • Easy to trade and manage.
  • Tight stop loss.
  • Positive risk-to-reward ratio's
  • No lag. Trade price action.
  • Trade any currency pair.

Trading Rules To Go Long

  • Entry: MACD trades above 0 and price breaks and closes above the support/resistance indicator red dots (resistance).
  • Stop Loss: Place your stop 5 pips below broken resistance.
  • Take Profit: I recommend to take profit at risk-to-reward 1.5 (total risk *1.5) or better.

Trading Rules To Go Short

  • Entry: MACD trades below 0 and price breaks and closes below the support/resistance indicator blue dots (support).
  • Stop Loss: Place your stop 5 pips above broken support.
  • Take Profit: I recommend to take profit at risk-to-reward 1.5 (total risk *1.5) or better.

Example

Support and Resistance Trade Entry

As seen on the EUR/USD 1 hour chart above, price breaks and closes below support while the MACD indicator trades in negative territory (below 0). We open a short trade at the close of the candle at 1.2803 with stop loss placed 5 pips above the blue dots at 1.2845. Total risk on this short trade: (Stop loss level - trade entry level (42 pips). Take profit level: total risk *1.5 = 63 pips (1.2740)

Another Example

Support and Resistance EUR/USD short trades

As shown in the chart above, we had 3 valid short trade entries. Entry 1 at 1.2845 with stop loss placed at 1.2865 and 30 pips profit target, Entry 2 at 1.2803 with stop loss at 1.2803 and 63 pips profit target, and finally Entry 3 at 1.2712 with stop loss placed at 1.2726 and 21 pips profit target. All trades were profitable for a total of 114 pips in only 3 trading days.

You Might Also Like:

  • Forex Trading With The Trend And Consolidation Patterns...
  • Double Oscillator Forex Trading Strategy...
  • Forex SlingShot 30M Trading Strategy...
  • 1-2-3-4 Forex Reversal Trading Strategy...
  • Currency Trading with ADX and PSAR...
  • How to Trade Both Trend and Range Markets by Single Strategy?...
  • Forex Trading Strategy 10 pips by Rob Booker...
  • Forex Carry Trade Strategy...

INTERESTING FOREX SITES
Free Forex Strategies & Systems
A collection of forex systems, indicators and strategies. 100% Free Download.
Download Free Forex Strategies and Top Rated Metatrader 4/5 Indicators
Download top rated forex strategies and best MT4/MT5 forex indicators.
100 Forex Trading Strategies
Each forex strategy includes the buy and sell rules, and a free download link!
Get Forex Analyzer PRO Forex System
Start trading with one of the best fx systems for profitable forex trading!

Back to forex trading strategies

Find Us On Facebook

Best Forex Trading Software

Holo Eagle Forex System

Morpheus Forex trading System

Fibonacci Forex Scalper System


Home | Forex Newsletter | Site Map | Resourses | Forex Advertising | Forex Brokers | Forex Solo Ads | Contact Us
Any articles, systems, strategies, reviews, ratings, news, research, analyses, prices or other information contained on this website, by Aboutcurrency.com, its partners or contributors, is provided as general market commentary and does not constitute investment advice. Aboutcurrency.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.



Copyright © 2021 Aboutcurrency.com. All rights reserved.
By using this site, you agree to the Terms of Use and Privacy Policy .
Risk Disclosure: Trading forex on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.