How to use support and resistance area

 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.

Fact of Fear and Greed During Trade

 

Are the markets really controlled by fear and greed? Common beliefs are:

#Greed makes you take bad trades.

#Greed makes you stay in too long.

#Greed makes you over leverage.

#Fear makes you scared of missing out.

#Fear makes you scared of losing money.

#Facts are: This is true to some but not in the way everyone thinks.

#Fats are: Traders want to be productive, not greedy.

#Facts are: Traders get less and less greedy the longer they trade.

#The Fear should subside over time as you develop the confidence to perform actions that bring consistent. Positive growth.   

                                                                       Pain and Pleasure During Trade

Consecutive Three Daily Candle Trading Strategy

 Consecutive Three Daily Candle Trading Strategy 

Time Frame: D1 only

Indicator: No need Indicator

On the basis of Candlestick, that means pure price Action.

Buy Entry Rules:

# 1st candle and 2nd candle body are shorter than the 3rd candle body length(Consider only Body).

#2nd or middle candle is Bearish Candle only.

#3rd candle closing Price should be higher than the 2nd candle closing Price.

Sell Entry Rules:

#1st candle and 2nd candle body are shorter than the 3rd candle body length(Consider only Body).

#2nd or middle candle is Bullish Candle only.

#3rd candle closing Price should be lower than the 2nd candle closing Price.

Precaution: Not take buy entry near the Resistance Level(D1). Not take sell entry near the Support level(D1).

                 Try to take Buy entry from support Level and Sell entry from Resistance Level.

Stop Loss:

    50 pips or 1st candle low or high.

Take Profit:

      1.Maintain 1:1 ratio

      2.Next Support or Resistance Level.

      3.After two Days where the market close.