Trade between Resistance and Support levels

Trade between Resistance and Support levels 300 169 Minimalist Trading – Best Trading Indicators for TradingView

Trade between Resistance and Support levels

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Introduction

Today we’re looking at another trading setup using our technical indicators, which are considered to be among the best indicators for TradingView. In particular, we’re using the Bottoms Tops Signal in combination with the Levels and Zones, and the RSI Exhaustion.

In today’s technical setup we take particular advantage from the resistance level and the support level suggested by the Levels and Zones. In particular, the resistance level is useful in setting our safe stop loss, and the support level is, instead, our ultimate target. When you want to learn how to make money on foreign exchange, you should definitely understand the importance of major levels like the ones that we exploit in this trading setup.

Trade setup – 26 Mar 2018

Trade between Resistance and Support levels Setup 1

A very clear setup has formed just below a major resistance. This indicates a high probability trade and so we trade it!

In particular:

    1. The price and the RSI Exhaustion are in divergence
    2. The RSI Exhaustion is bullish exhausted
    3. A now top formed and it is now confirmed

We set the stop loss just above the resistance so that we are extremely safe and protected, and we set the target down at the major support. In this case, the Levels and Zones indicator is offering us a very clear picture of where the price can move, and with the help of the other indicators, we can predict where it will most likely move.

Trade update – 27 Mar 2018

Trade between Resistance and Support levels Setup 2

In the setup above we erroneously placed the entry price at the bottom of the candle, but the candle closed higher (in our trading account it was correct!).

So, in our trading account, we entered at a much higher price and so the actual risk reward is better, it’s 5.3 to be precise.

Now the price is moving into the stop loss area but we are enough protected by the sell zone and the major resistance.

Trade update – 27 Mar 2018

Trade between Resistance and Support levels Setup 3

The price is now slightly lower but it’s finding a hard time moving down. However, the RSI Exhaustion is moving significantly lower and so the price should follow.

Trade update – 28 Mar 2018

Trade between Resistance and Support levels Setup 4

We are now about halfway into the target so there’s still a long way to go.

The price movement allowed us to move the stop loss to breakeven so that, from now, we are in a risk-free trade.

Trade update – 28 Mar 2018

Trade between Resistance and Support levels Setup 5

The volatility has increased and the price is almost down to our target.

By making a simple candle analysis we see a bearish setup and so we can be confident in saying that we should see a lower price.

Trade closed – 29 Mar 2018

Trade between Resistance and Support levels Setup 6

We just reached the target of this trade between resistance and support levels.

Ultimately we got a very profitable trade with a 5.3x return which was achieved by performing a very simple yet rigorous chart analysis and then executing one of our favourite currency trading strategies.