Fade Breakout Forex Support and Resistance Strategy
This system works on a 15 minute, 30 minute and 1 hour candle. This is applicable to EU, UJ, GU, UCHF, UC, AU and NU. This is based on a price action.
Forex Indicators:
- Pivot points levels
- Fibonacci retracement
- Static and dynamic support and resistance.
After the market fails to break the resistance level or below support level, the market may reverse.
Markets often reverse after a failure to break above the resistance level or below the support level.
You will notice a failure to break the resistance level is when the shadow of the candle that goes above the resistance level but fails to close above it, and the
the price falls back below the resistance level. You will also notice a failure to break the support level is when the shadow of the candle that goes below the support level but fails to close below it.
price rises above the support level.
Long Entry:
- Identify the support level.
- Identify a candle that has a shadow that goes below the support level.
- Wait for that candle to close as a bull candle. This is called the falsebreak
- candle.
- Enter at the opening of the next candle.
- Set a stop loss of 5 pips below the low price of the false break candle.
- Set two profi t targets for this trade. Set the two targets at a risk to
- reward ratio of 1:1
Short Entry:
- Identify the resistance level.
- Identify a candle that has a shadow that goes above the resistance level.
- Wait for that candle to close as a bear candle. This is called the falsebreak
- candle.
- Enter at the opening of the next candle.
- Set a stop loss of 5 pips above the high price of the false-break candle.
- Set two profi t targets for this trade. Set the two targets at a risk to
- reward ratio of 1:1.
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