Simple Support Resistance
Box Trading is a box breakout strategy.
Time frame 15 min or
higher.
Indicators 21 EMA and 50
EMA.
This template can be
traded on any pair – there are no restrictions. Although I
recommend trading the Simple Support Resistance Box Trading on
15-minute and 30- minute timeframe – it will work on any timeframe.
Trading rules Simple Support Resistance Box Trading
First
Draw 2 horizontal lines
on the chart to delimit the sideways market , these lines are the
support and resistance.
Second
Price breaks the
resistance or the support, the EMA's crosses.
Third
Buy o Sell when the price
bounces on the previous resistance or support (with stop loss
below/above the high/low).
four
Exit when the price
reache the widith of the box area.
See examples
As you can see our
take-profit is typically the same number of pips as the width of the
“box” we have drawn between the resistance and support lines.
Also, we place our stoploss below the low the pullback where we enter
– this gives us a fairly small stoploss and typically a 2:1
Reward-to-Risk ratio! Let’s take a look at another trade:
The above example is on
the 4-hour timeframe. Also, you will note that the way in which we
draw the support and resistance lines – we miss out the highs and
lows of the candles – this is an extremely critical part of what
makes this template different to other breakout methods.
إرسال تعليق