This strategy uses support and resistance levels formed by horizontal lines at previous highs and lows to identify trading signals. When the price consolidates near a support or resistance level for a period before breaking through, it provides a signal to take a long position if breaking above resistance or a short position if breaking below support. Stop-losses are placed at the previous candlestick's high or low, while take-profits are either set relative to stop-loss or using a trailing stop. Examples of both support and resistance set-ups are provided. This strategy has defined stop-losses, a relatively high success rate but unclear target levels.

1. Support and Resistance
simple strategy
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2. Support and Resistance
simple strategy
• is a widely used trading system based on the
horizontal levels of support and resistance.
These levels are formed by the candlesticks'
highs and lows. A break-through of these levels
after a period of consolidation gives a signal for
a trend. This strategy doesn't require any chart
indicators except for the ability to draw lines (at
least imaginary)

3. Features
• Well-defined low stop-loss.
• Relatively high success rate.
• Unclear target levels.

4. How to Trade?
• Support level
• Support level is formed by the lows
of two or more candlestick bars that
form a rather straight horizontal line
with no lower lows between them.

5. How to Trade?
• Resistance level
• Resistance level is formed by the
highs of two or more candlestick
bars that form a rather straight
horizontal line with no higher highs
between them.

6. Consolidation
• Consolidation is a period without
any trend, forming near support or
resistance level, with the relatively
small candlestick bodies.

7. Close Manner
• A close below the support level
signals a short position.
• A close above the resistance level
signals a long position.

8. Stop-loss & Take-profit
• Stop-loss is set to the low of the
previous candlestick (for the long
positions) or to the high of the
previous candlestick (for the short
positions).
• Take-profit can be set relatively to
the stop-loss or as a trailing stop of
some sort

9. Example
Support set-up:

10. Example
Resistance set-up: :

11. Thank You
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