43#Support and Resistance Trading System
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1 Hour chart , any currency pair.
4 Red dots ( Resistance ) + Down Trend ( Red Bar )
Entry point is the next candle after the red bar and red arrow. Open the trade AFTER the current candle is formed and closed.
1 Hour chart, any currency pair.
4 blue dots ( Support ) + Up Trend ( Blue Bar )
Again, entry point is the next candle after the blue bar and blue arrow formation. Open the trade AFTER the current candle is closed.
Targets and stop loss:
For targets we are going to use support and resistance lines.
Red / pink lines = Targets for sell trades
Green lines = Targets for buy trades
White line = Pivot point
For Stop loss, use the last support and resistance levels. Or the last opposite dots.
For example, when you enter a long trade – buy trade – use the last entry dots as your stop loss.
And when you enter a short trade – sell – then use the last entry dots as your stop loss.
Support/Resistance breakout Entry:
Sometimes, price would break the last support or resistance but the fractals indicator would not produce any new dots.
In this case you can enter the trade after the breakout even if you didn’t get a new arrow in the direction of the breakout.
Remember, the idea here is to trade support and resistance levels. Not to follow the dots!
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Support and Resistance Forex strategies