How To Trade Support & Resistance Levels

  • Superforex No Deposit Bonus

Explore The Chapters

Nothing is more noticeable on any chart than support and resistance levels. These levels stand out and are so easy for everyone to see!

Why?  Because they are so obvious.

As a matter of fact, support and resistance trading is the core of price action trading. Even synthetic indices charts show clear support and resistance levels.

The key to successful price action trading lies in finding effective support and resistance levels on your charts.

Now, in here, I  talk about 3 types of support and resistance levels and they are:

The normal horizontal support and resistance levels that you are probably most familiar with.
Broken support levels become resistance levels and broken resistance levels become support levels.
Dynamic Support and Resistance Levels

Now, let’s look at each in much more detail.

Horizontal Support and Resistance Levels

These are fairly easy to spot on your charts.  They look like peaks and troughs.

The chart below is an example and shows you to trade them:



How To Find Horizontal Support And Resistance Levels On Your Chart

If price has been going down for some time and hits a price level and bounces up from there, that’s called a support level. You can check your synthetic indices chart for confirmation.
Price goes up, hits a price level or zone where it cannot continue upward any further and then reverses, that’s a resistance level.

So when price heads back to that support or resistance level, you should expect that it will get rejected from that level again.

The use of reversal candlestick trading on support and resistance levels becomes very handy in these cases.

Significant Support & Resistance Levels

Not all support and resistance levels are created equal on your forex chart. If you really want to take trades that have high potential for success, you should focus on identifying significant support and resistance levels on your charts.

Significant support and resistance levels are those levels that are formed in the large timeframes like the monthly, weekly and daily charts.

And when price reacts to these levels, they usually tend to move for a very long time.

  • hfm demo contest
  • Surge Trader
  • funded next

Now, here’s the technique I use to trade setups that happen in larger timeframes:

I switch to smaller timeframes like the 4hr & the 1hr, 30min, 15min and even the 5min and wait for a reversal candlestick signal for my trade entries. This is so that I can get in at a much better price level as well as reduce my stop loss distance.


That’s what multi-timeframe trading is all about.


Support turned Resistance Level  And Resistance Turned Support Level

Now, the next on is this thing called Support turned Resistance Level And Resistance Turned Support Level.

There are many traders that don’t realize that usually, in a downtrend, when a support level has been broken to the downside, it often tends to act as a resistance level. Here is an example shown on the chart below:



So when you see such happening, you should be looking for bearish reversal candlestick to go short. As a matter of fact these “R’s” are the upswings in a downtrend.

Similarly, in an uptrend you will also see such happening where Resistance levels get broken and when price heads back down to these, they now will act as support levels…Here’s an example:



Look for bullish reversal candlestick around these type of resistance-turned-support levels as your signal to buy.

Can you see how the need for using other indicators is diminished once you understand how easy is to spot such trading setups like these?

Keep training your eye to see these through practice and your trading will improve by a wide margin.

Daily Inside Bar With Support And Resistance Level Breakout Trading Strategy

Bollinger Band With Horizontal Support And Resistance Forex Trading Strategy

MT4 Support And Resistance Indicator-Best Support And Resistance Indicator MT4

Explore The Chapters In The Price Action Course

Share this using the buttons below


Other Posts You May Be Interested In


Bullish Engulfing Pattern Forex Trading Strategy

One important skill as a forex trader is the ability to spot reversal patterns when [...]

Iq Option Broker Review

Iq option was originally founded as a binary options broker in 2013. The broker has [...]

Deriv Broker Review 2024 ✅: Is Deriv Legit Or Is It A Scam? is a new trading platform that has roots going back 20 years to as [...]

Heikin Ashi Forex Trading Strategy

Heikin-Ashi candles are a variation of Japanese candlesticks and are very useful when used as [...]

How To Trade Flags & Pennants

Flags and pennants are popular continuation patterns that every trader must know. Flags and pennants [...]

Reversals & Continuation Candlestick Patterns

A reversal is a term used to describe when a trend changes (reverses) direction. This [...]