Simple strategy with support and resistance levels + price action

Trade instruments: EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD NZD/USD.

Time frame: M30 and M60

This forex strategy is not using indicators based on mathematical algorithms. but only indicators price action support and resistance.

Strategy details

Markets often reverse after a failure to break above the resistance level or below the support level. At the resistance level, the failure is characterized by the shadow of the candle that goes above the resistance level but fails to close above it. Subsequently the price falls back below the resistance level At the support level, the failure is characterized by the shadow of

the candle that goes below the support level but fails to close below it.

Subsequently the 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.

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 profit targets for this trade. Set the two targets at a risk to

reward ratio of 1:1

Long trade chart:

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. (See picture 2 .)

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 profit targets for this trade. Set the two targets at a risk to

reward ratio of 1:1.

Short trade chart: