Trade entries: Using Intraday Forex Support and Resistance to Maximise Risk:Reward

LeoFinance
18 days ago
2 Min Read
357 Words

Direct from the desk of Dane Williams.



Are you trying to learn forex trading?

It all starts right here with my simple forex support and resistance strategy.

Within this guide, you'll learn my trading strategy that combines forex support and resistance with powerful price action setups.

It's time you became a consistently profitable forex trader.


Trade entries: Using Intraday Forex Support and Resistance to Maximise Risk:Reward

In order to find entries, I finally zoom into an intraday chart and use short term support/resistance.

I do this to make sure all time frames are lined up and telling us to trade in the one direction. It also allows us to get the best risk:reward possible.

Example Long Entry on USD/JPY

Remember the higher time frame analysis we already did on USD/JPY? As price was above higher time frame support, we were looking only to long.

Now take a look at the intraday price action when price came back to retest daily support, on the hourly:

USD/JPY short term support and resistance on the hourly

How to Enter a Long Forex Trade Using my Simple Forex Support and Resistance Trading Strategy

  1. Wait for price to retest and then hold daily support.
  2. Find the first area of short term resistance (a red hourly candle above the daily zone) and draw a short term zone.
  3. When price retests the short term zone, go long.
  4. Place your stop below the intraday zone if you're aggressive or below the daily zone if you're conservative and target 1:3 risk:reward.

Do the opposite for a short entry if the daily chart is below resistance.

You can also see on the USD/JPY example above, that price gave you a second chance to double down and compound your profits.


If you have any questions around using intraday support and resistance to find entries with maximum risk:reward, then leave a comment below and I'll be happy to have a chat.

Best of probabilities to you,

Dane.



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