Horizontal Support & Resistance Forex Swing Trading Strategy





This swing strategy is the basic and most popular for all traders around the world.
Know the support and resistance level first to be more effective in using this strategy. To know these levels you have to look for a series of low points where price does not fall below any further, this is your support. Resistance levels will be identified when you see a series of high points where price does not rise above it. The levels are stronger when price bounces on these levels.
This is purely price action, no need for indicators. This is applicable to any currency pairs and all higher timeframes from 1-hour above.

Buy Rules:

  1. Identify a support level then draw a horizontal support line on it and wait for the price to bounce in this area.
  2. When price touches and bounces the support line, wait for the candlesticks to close and place a buy stop order 2-5 pips above that high of the candlestick that bounces the support line or you can place a buy limit order so when price reaches it, it activates it and you are in a trade, or you can buy immediately at market price when price touches that level.
  3. Place your stop loss 10-30 pips below the support line for buy limit or at market orders.
  4. Take profit at the resistance levels.

Sell Rules:

  1. Identify a resistance level then draw a horizontal resistance line on it and wait for the price to bounce in this area.
  2. When price touches and bounces the resistance line, wait for the candlesticks to close and place a sell stop order 2-5 pips below the low of the candlestick that bounces the support line or you can place a sell limit order so when price reaches it, it activates it and you are in a trade, or you can buy immediately at market price when price touches that level.
  3. Place your stop loss 10-30 pips above the resistance line for sell limit or at market orders.
  4. Take profit at the support levels.

Trade Management:

  • Close half of the position when the price goes to the halfway point between the support and resistance levels.
  • Move stop loss and trail the stop to lock in profit as the market moves in your favor or move the stops behind the swing high or low so that there is lesser chance of you getting stopped out.
Open an AUDUSD daily chart for the template.


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