Forex Trading Using Support and Resistance Levels
Forex Trading Using Support and Resistance Levels , after you find out what is meant by support and resistance levels then the next thing to know is how to use it as a forex trading tool, of course to get profit in the form of pips . The right advice to open a trading position using this method is after a bounce and penetrate the level.
Why are we waiting for a reflection and not opening a trading position directly after the price touches the suport level and resistance is because we want to ensure that we are not fooled by the instant price movements due to market sentiment.
Penetrating Method (Break)
To open a trading position using the method to break the level (break) is still divided into two ways, namely aggressive and conservative. And what is meant by the method of breaking the level (break) is that we open a trading position after the price breaks the support level (breakdown) or breaks the resistance level (breakout).
Using an aggressive method means that we open a trading position directly after the price has broken through the support or resistance level without waiting for confirmation again because it is sure that the price will never return.
Using a conservative means that we are more careful because the movement of the price cannot be predicted. And we open a trading position after the level is broken and then confirmed with a pullback. This is so that we are not fooled by the false movements of the market.Conservative way
Well, if we see that every time we always do not forget to put a stop loss is nothing but the capital that we have can be protected from the name of loss due to our own mistakes even though we believe that our predictions based on the analysis are correct