A sound manual trading strategy. Hi everyone, you may have time to manually trade your forex account, and for those I wanted to share a simple yet effective way to trade without an expert.
Support and Resistance Trading
This is about as easy as it gets, yet many traders try to complicate trading with many indicators drawn all over their chart. Let's have a look at this chart. This would be a trade set-up for a "long" trade or a "buy" trade.
In the above example we would have a profit of around 28 pips. Not bad at all. Now depending on your risk appetite you would probably want to put a stop loss around the start of the support line. This would protect the trade in the event of a severe reversal or news event.
If we mirror the above chart the same can be used for a "short" trade or a "sell" of the market. The line would actually now be called a resistance line. When the price moves up and closes around the resistance line, we can place our order. You will notice that the price bar will not always close on or near the line. This is common and generally not a good time to enter the market. Look for the bar(candlestick) to close around the line.
I hope this illustrates a simple way to trade the market if you have the time to "watch" the market. Otherwise a solid expert advisor is probably your best bet, as you may be missing trade opportunities. Happy Trading!
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