Day Trading Support and Resistance Strategies

One thing you can be sure of in Forex trading is that you can never be too confident in your trade. When I tend to map out in my mind and exact trade and how it will happen I tend to not do as good as if I just let the market tell me what direction it is going. By allowing the market to tell me the direction, I have essentially taking a trading approach that can be successful. We often know how to succeed in day trading, however implementing the strategy is another story.

Trading Support Areas and Resistance

This is a very easy strategy to use when trading. You simply wait for some key levels on your time frame, then you wait for a snap back to a specific level, these levels.  One problem with day trading key levels is that you never know when we will snap back or pop through a key level and run stops. I will say that each pair has its own personality, for example EURUSD is known to run stops, as the AUDUSD is known to be more exact to key turns on supports.

Setting Stops in your Scalping Strategy

It is very important to have your stop set or make sure you at least know where you are getting out if the trade goes wrong. I do not use trailing stops, however this may be an option depending on your time frame and strategy.