How to use support and resistance area?
Support and Resistance price zones are used by the biggest banks, financial institutions, and many forex traders.
They traded with this area in different ways like:
1) Range trading - trade pullbacks.
2) Trade reversals as soon as supports become resistances or resistances become supports.
3) Take profits or set stop-loss based on support/resistance zones.
Pullback Trading from Verified Support
The verified support level is the level where the price touched at least two times a recent period.
Reversal trading from Turncoated S/R
Truncoated area is the area where previous support acted as new resistance and previous resistance acted as new support.
For setting take profit and stop loss support resistance area is the ultimate choice of most of the traders.
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