The awesome Support & Resistance Forex trading strategy is a based on price action and defines powerful buy/sell setups with the help of support and resistance zones.
Moreover, it prevents the trader from taking risky trades.
Trading without the use of support and resistance zones is like blind driving.
Regardless of the strategy that you adopt, support and resistance zones are enormously informative and helpful for your trading.
Being able to effectively use support and resistance zones is vital to your success as a currency trader.
This strategy is designed to make spotting support and resistance areas less time consuming, thereby easing the placing of profitable market orders.
Let’s get started:
MetaTrader4 Indicators: awesome_SupDem.ex4 (Default Setting), mega-trend-indicator.ex4 (Inputs Variable Modified; period=90), zwinner-trend-indicator.ex4 (Inputs Variable Modified; go_76=36)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If price bounces off the support area of the awesome_SupDem Metarader 4 forex indicator as illustrated on Fig 1.0, bulls are said to be driving price higher, therefore a buy signal will suffice.
- If the blue line of the mega-trend-indicator stays positioned slightly below the candlesticks as shown on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to buy the designated currency pair.
- If the zwinner-trend-indicator displays lime signal bars that runs horizontally within its window as depicted on Fig. 1.0, it is a signal to buy the forex pair of interest.
Stop Loss for Buy Entry: Place stop loss 2-5 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If during a bullish trend price bounces off a resistance area that is created by the awesome_SupDem indicator, it is indicative of a bearish reversal, therefore an exit or take profit will suffice.
- If the line of the mega-trend-indicator turns red during the course of a bullish signal, price is said to be making a bearish reversal, as such an exit or take profit will suffice.
- If the zwinner-trend-indicator pops up a red signal bar within its indicator window (see Fig. 1.0), bulls power is said to be weaning, hence an exit or take profit will do.
Sell Entry Rules
Go short if the following setups gets displayed rightly on the activity chart:
- If price bounces off the resistance area (doing so twice at Point A & B) of the awesome_SupDem indicator as depicted on Fig. 1.1, bears are said to be pushing price lower, hence a trigger to go short on the designated forex pair.
- If the red line of the mega-trend-indicator stays positioned marginally above the candlesticks as indicated on Fig. 1.1, price is said to be taken lower i.e. a trigger to sell the selected forex pair.
- If the zwinner-trend-indicator displays red signal bars that runs horizontally within its window as illustrated on Fig. 1.1, it is a signal to sell the forex pair of focus.
Stop Loss for Sell Entry: Place stop loss 2-5 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If price bounces off a support area that is created by the awesome_SupDem indicator during the course of a bearish trend, bears power is said to be halting, therefore an exit or take profit should be considered.
- If the line of the mega-trend-indicator turns blue while a sell signal is ongoing, price is said to be making a likely bullish reversal, hence a trigger to exit or take profit immediately.
- If the zwinner-trend-indicator pops up a lime signal bar within its indicator window (refer to Fig. 1.1), bears power is said to be halting, as such an exit or take profit is strongly recommended.
Sell Trade Example
About The Trading Indicators
The awesome_SupDem.ex4 Metatrader 4 indicator is a remarkable trading tool that is used to determine support and resistance levels directly on the activity chart.
The mega-trend-indicator.ex4 is an enhanced Hull Moving Average set to a default period of 144.
It attempts to eliminate price lag while also enhancing smoothing.
The zwinner-trend-indicator.ex4 is a forex indicator that offers precise buy and sell signal alerts based on price breakouts and market reversals.