The best tool to trade the Forex Market

Since the market is so slow, I thought about writing about the tool that changed the way I trade, in fact, it changed the way I see the market for ever.

Are you ready?

The name of this tool is…

Support and Resistance levels

Did you think I was going to show you a new indicator?

Nah!

Long live Support and Resistance levels!

This is how I use support and resistance level (and you can use them too)

  • I use long term S&R levels to determine which way to trade (bullish, bearish, no-trade)
  • I use short term S&R levels to pinpoint my entries
  • I also use short term S&R to take partial profits (if I’m going long from a short term support level, then I take partial profits around the next short term resistance level).
  • Long term S&R levels to take profits
  • I use S&R levels to create a trading plan for each currency pair (e.g. if the market breaks an important resistance level I’ll start looking for long opportunities).

What else do you use S&R levels for?

What’s your favorite tool or indicator to trade the Forex market?

forex tools, support and resistance


Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .