Support & opposition strategy for Forex trader + broker

The Support and opposition strategy in the test:

In the foreign exchange the Trading of support areas and opposition plays an often applied method. A basis are, besides, opposition and support levels in the Chartmuster of the respective currency pairs or the generally traded values. As soon as the course one of the levels is evaluated this as a token for the demolition of a trend and a change of course linked with it. Special indicators are not required with this strategy. Instead, merely imaginary lines are marked in the respective opposition and support areas of the charts.

Advantages of the Support and opposition strategy:

• good definition of the Stop-Loss brands
• the Trading with opposition and support offers a good success rate

Disadvantages of the Support and opposition strategy:

• the take profit brands can be not always defined clearly

Use of the Support and opposition strategy

1. The Trading of support and opposition areas is possible for all values and time areas.
2. One speaks of a support area if the course reaches at least 2 times his low-pressure area without breaking through this. From the low-pressure areas a horizontal line is formed.
3. Have turned around opposition areas such areas to put the high touched without, besides, a new high with which the course 2 times or more often. The highs also form a horizontal line.
4. If the course for a certain period follows no trend it concerns a consolidation. In most cases it comes in this period to opposition areas with rather small Chartbalken.
5. If the course breaks through an opposition area, this is evaluated as a Long signal.
6. If the course breaks through a support area this is a Short signal.
7. With Short positions it is put of the Stop-Loss on the high of the last Candle before the breakthrough.
8. With Long positions it is put of the Stop-Loss on the low-pressure area of the last Candle before the breakthrough.

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