Support and Resistance Forex Monthly Strategy

Support and Resistance Forex Monthly Strategy

TimeFrame: Monthly

Requirement :

1.Support Resistance(Horizontal or trendline)(Download From Here)
2.Default Stochastic Indicator
3.SSG Fbar Indicator (Download From Here)

Trading conditions:

Long trade entry:

  • Identify where support zones exist on the monthly chart. That includes both horizontal support due to past lows/highs but also support due to falling or rising trendlines that connect several past lows or highs.
  • Look for a bullish signal to occur at the support zone. Either a bullish chart pattern or a bullish signal from the indicators.

Long trade stop loss:

  • Place stop below the low of the bullish pattern

Long trade exit and targets:

  • Place target at the next resistance higher
  • Or exit when overbought levels are reached on the indicators.
Monthly Entry Chart

Short trade entry:

  • Determine the most important resistance zones on the monthly chart
  • Look for convergence of bearish signals at resistance
  • Enter once the above conditions are satisfied

Short trade stop loss:

  • Stop behind the top of the bearish pattern

Short trade exit and targets:

  • Target the next support down
  • An oversold signal on momentum indicators can also be a reason for an earlier exit.

For more about this strategy

One thought on “Support and Resistance Forex Monthly Strategy”

Leave a Reply

Your email address will not be published. Required fields are marked *