The Best Way to Trade Forex is to Trade Support and Resistance Levels
Everyone knows this is a fact. It is more useful in forex than any other market. Here is how it is done in the most simplest way possible. Don’t waste time on taking expensive forex trading courses, or forex trading books. Keep it simple just apply this Forex trading support and resistance strategy for beginners.
If you’re looking for forex trading strategy for beginners then you don’t need to look at anything else. You really don’t need anything else. This is really really really the BEST way to trade forex.
Analysis Time Frame
Daily Chart: Look for Trend or Range and Look for Trend and Range Candles
If Trend, mark swing highs and lows. Use Trend lines if you like but I prefer the horizontal levels / lines more than TL based S/R Zones.
If Range: Mark Range Highs and Lows (horizontal lines/zones)
Trading Time Frame: H1 or H4
Look for Confirmation Patterns near the support and resistance pivot points.
- Candle Patterns like OB’s and PB’s that bounce off the S/R. (OB is Outside Bar and PB is Pin Bar)
- See if can spot Double Tops / Bottoms
- or when you find both then you’re dancing with wolves
And then HOLD Your Winners until they turn into big winners
If the Market is Trending on an hourly chart between a Wide Range of S/R (Support and Resistance) you’ve identified on the Daily Chart then: Trade Breakouts, Trend Candles, Waltz, Pullbacks, Seeds, and Cherries in that direction.
Example 1 GBP/USD: The Cable
Chart 1: GBP/USD D1 Chart: here I have marked the Resistance Levels at (1) which will be tested on the 13th of May. We will see that on the H1 / H4 chart for Entries.
Chart 2: GBP/USD H4: We see A doji / range candle that bounced off the level marked as one in the previous chart.
Chart 3: GBP/USD H1: This is where I saw this beautiful Pin Bar signal. This is a Lovely Fruit Long Signals or the more popular name for this candle or bar formation is a Pin Bar or Hammer.
Go Long with Stop Loss below the Resistance level that is now turned into Support.
If you’re looking for forex trading strategy for beginners then you don’t need to look at anything else. You really don’t need anything else. This is really really really the BEST way to trade forex.
Example 2: USD/JPY
Chart 1: USD/JPY D1 – The numbers from 1-6 show an important support level. Price has touched it 5 times or more. At point 6 there was an opportunity to trade. The next chart shows how a buy signal was created.
Chart 2: USD/JPY H1 –
Point 1 and Point 2 show the familiar pattern called The Double Bottom
At Point 2, we see the Strong Bullish Pin Bar. This is where we go Long.
