How to Trade Support and Resistance.

Let’s take a look at how to trade support and resistance.

I can divide trading support and resistance levels into two methods

1. The “bounce“
2. The “break“

When trading the bounce, we want to tilt the odds in our favor and find some sort of confirmation that the support or resistance will hold.

Instead of simply buying or selling right off the bat, wait for it to bounce first before entering.

By doing this, you avoid those moments where the price moves so fast that it slices through support and resistance levels like a knife slicing through warm butter.

Or your warm hand.

As for trading the break, there is an aggressive way and there is a conservative way.

In an aggressive way, you simply buy or sell whenever the price passes through a support or resistance zone with ease.

In the conservative way, you wait for the price to make a “pullback” to the broken support or resistance level and enter after the price bounces.

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