171# Support and resistance bounce

Support and resistance trading

Submit by Larry W. 13/13/2015


Support and resistance bounce is a classic trading technique adapted and reworked with MetaTrader 4 indicators.

The principle of this strategy is that if the price does not break support or resistance bounces. The goal of this strategy is to capture this rebound.

This technique can be applied to any market  financial instrument and also for binary options high / low.

This technical discretionary is a bit simpler by indicators metatrader4.

But when you learned you can do without.

Time frame: any.

Financial markets: any.

Expiry time binary options high / low 1-2 candles.

  Metarader indicators:

fib SRT

EMA crossover signal (ema fast one, Ema slow 2)

Stochastic indicator (programmed by Sugarman) (5,3,3,).


Trading rules Support and resistance bounce


Buy

When appears a buy arrow of the Stochastic indicator wait, that the price bounces on the first support.This event can occur if appears an buy arrow of EMA crossover.


Sell

When appears a sell arrow of the Stochastic indicator wait, that the price bounces on the first resistance.This event can occur if appears an buy arrow of EMA crossover.


Exit position

Make profit with predetermined profit target that depends by currencies pair and the time frame (ratio 0.7-1.0 stop loss),


Tips: this technique has a great profitability.

I showed you this is just a basic idea of winning that can be improved by your imagination and knowledge.

For example, they could be taken into account only the bounces in the direction of the main trend.

If you apply this technique well, a broker will never play you against.


Initial stop loss on the previous swing high/low.

In the pictures Support and Resistance bounce in action.

 Support and Resistance bounce
Support and Resistance bounce
 Support and Resistance bounce
Support and Resistance bounce

You can also use ADX Crosses non reapint setting 3 period (close).

Support and resistance bounce with ADX Crosses non repaint
Support and resistance bounce with ADX Crosses non repaint
ADXcrossesNon-repainting.rar
compressed file archive 988 Bytes
Support and resistance bounce.rar
compressed file archive 299.4 KB

Write a comment

Comments: 5
  • #1

    Vtor (Monday, 14 December 2015 05:09)

    Ema crossover repaint

  • #2

    Harrison (Tuesday, 15 December 2015 17:54)

    Thank you Larry W. , this system is amazing !

  • #3

    Adam (Wednesday, 16 December 2015)

    Hi Larry , thanks for nice sharing . A question for you :setting of EMA crossover signal is ema fast 1 and ema slow 2 OR 3 ? Thankyou for replay .
    AdamTrader

  • #4

    hakan (Saturday, 16 January 2016 17:15)

    the strategy is amazing! I'll definitely try it

  • #5

    james (Tuesday, 14 June 2016 17:24)

    seems like a good strategy for martingale