171# Support and resistance bounce
Support and resistance trading
Submit by Larry W. 13/13/2015
Support and resistance bounce is a classic trading technique adapted and reworked with MetaTrader 4 indicators.
The principle of this strategy is that if the price does not break support or resistance bounces. The goal of this strategy is to capture this rebound.
This technique can be applied to any market financial instrument and also for binary options high / low.
This technical discretionary is a bit simpler by indicators metatrader4.
But when you learned you can do without.
Time frame: any.
Financial markets: any.
Expiry time binary options high / low 1-2 candles.
EMA crossover signal (ema fast one, Ema slow 2)
Stochastic indicator (programmed by Sugarman) (5,3,3,).
Trading rules Support and resistance bounce
When appears a buy arrow of the Stochastic indicator wait, that the price bounces on the first support.This event can occur if appears an buy arrow of EMA crossover.
When appears a sell arrow of the Stochastic indicator wait, that the price bounces on the first resistance.This event can occur if appears an buy arrow of EMA crossover.
Make profit with predetermined profit target that depends by currencies pair and the time frame (ratio 0.7-1.0 stop loss),
Tips: this technique has a great profitability.
I showed you this is just a basic idea of winning that can be improved by your imagination and knowledge.
For example, they could be taken into account only the bounces in the direction of the main trend.
If you apply this technique well, a broker will never play you against.
Initial stop loss on the previous swing high/low.
In the pictures Support and Resistance bounce in action.
You can also use ADX Crosses non reapint setting 3 period (close).