How to trade using Support and Resistance levels:
As has been found out, the market spends more time consolidating or being flat than showing a strong trend. The ability to correctly trade consolidating market can be vital for a successful trader. Using only support and resistance levels is the basic way to trade the consolidating market.
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Basically, all you need to do is to determine the Support and Resistance, and then trade inside those lines!
How to determine where the Support and Resistance lines lie:
In order to correctly determine where the support and resistance lines are, you need to look for “pins” on your chart. “Pins” are where the price has reached its high or low but never broken out. Just like on the example below:
As you can see at some point the resistance line can become a support line and vice versa. But the price is still inside those lines we have drawn.
Notice, that Support and Resistance lines can be not only straight horizontal but that can be located diagonally as well.
We recommend you to train your skills on the Demo platform at first and then switch to the real trading!