Support And Resistance Breakout Forex Swing Trading Strategy
This strategy is a form of support and resistance trading. In this method, the support will become resistance and the resistance will become support.
This system works when the price breaks a level of strong support then the price rises back up to the previous support and what is now the resistance level. When the price broke above the strong resistance level, the price will pull back down and hit the previous resistance which is now the support level.
This system will require no indicators, only price actions. You can use this to any timeframe and currency pairs.
Buy Rules:
- The price must break the resistance level then pulls back down to the resistance level it broke.
- Place buy stop order above the high of the candlestick that breaks and closes the resistance line, or you can place a buy limit 2-5 pips above the resistance turned support line, or buy immediately at the market price.
- Stop loss can be placed 10-30 pips below the resistance turned support line. For buy stop orders, you can place it 2-5 pips below the low f the candlestick that touches that line.
- Take profit at the previous swing high.
Sell Rules:
- The price must break the support level then pulls back up to the support level it broke.
- Place sell stop order below the low of the candlestick that breaks and closes the support line, or you can place a sell limit 2-5 pips below the support turned resistance line, or buy immediately at the market price.
- Stop loss can be placed 10-30 pips above the support turned resistance line. For sell stop orders, you can place it 2-5 pips below the low f the candlestick that touches that line.
- Take profit at the previous swing low.
This is a price action method, Use AUDUSD for the template.
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