Fxaccurate US
This video shows an accurate support and resistance indicator that can identify breakouts, and explains how to use it in stock and forex trading.
How to Trade Using Support and Resistance Indicators: A Comprehensive Guide
Introduction:
Support and resistance are considered one of the most critical concepts in trading. These concepts help traders to make informed decisions related to buying and selling assets. In this article, we will explain the concept of support and resistance and how to trade using support and resistance indicators.
Understanding Support and Resistance:
Support and resistance are essential concepts in trading, as they help traders to understand the price levels where traders are buying and selling an asset. Support is a level where buyers are present, while resistance is a level where sellers are present.
Support and resistance levels are created when a large number of buyers or sellers enter the market, resulting in the creation of a buy or sell zone. These zones indicate the levels where the price of the asset is likely to move in a certain direction.
Trading with Support and Resistance Indicators:
Trading with support and resistance indicators is a popular trading strategy. These indicators help traders to identify the support and resistance zones in the market to make informed trading decisions.
Support and resistance indicators include support and resistance levels, overbought and oversold oscillators, trend multiple cross indicators, and others. These indicators help traders to identify the zones where traders are buying or selling the asset.
For example, when the support and resistance levels indicator gives a bullwick signal, traders can place a buy order. The indicator provides the confirmation of a bullish trend in the market. To confirm the trend, traders should also check the signal line and MA lines of the trend multiple cross indicator, which should be above the zero level.
Similarly, when the support and resistance levels indicator gives a bearwick signal, traders can place a sell order. To confirm the trend, traders should check the signal line and MA lines of the trend multiple cross indicator, which should be below the zero level.
To manage risk, traders should place their stop-loss orders at the current market’s lower level for buy orders and current market’s higher level for sell orders. The risk to reward ratio should be 1 to 1.5.
Trading Examples:
Let’s look at some trading examples to better understand the concept of support and resistance indicators.
Example 1: The support and resistance levels indicator has given a bullwick signal, confirming that the market is in a bullish trend. Traders can place a buy order with a stop-loss order at the current market’s lower level. The risk to reward ratio should be 1 to 1.5.
Example 2: The support and resistance levels indicator has given a bearwick signal, confirming that the market is in a bearish trend. Traders can place a sell order with a stop-loss order at the current market’s higher level. The risk to reward ratio should be 1 to 1.5.
Example 3: The support and resistance levels indicator has given a bearwick signal. Traders place a sell order, but unfortunately, the trade hits the stop-loss order. This is an example of how not all trades will be successful, and traders should be prepared to manage their risk accordingly.
Conclusion:
Trading with support and resistance indicators is an effective trading strategy. Support and resistance levels help traders to identify the zones where traders are buying and selling the asset. To make informed trading decisions, traders should also use other indicators such as overbought and oversold oscillators and trend multiple cross indicators. By following proper risk management techniques, traders can improve their chances of success in the market.
