The Extreme Support and Resistance

Market price movements always leave the highest and lowest points in each period. The highest and lowest daily level different from the lowest to the highest hourly, and so on. Conditions so we can use as a reference in order to buy or sell. Buy when the price is already reached level low until there is no other lowest price. The lowest level called support. Sell when the price has reached the highest level until there is no more the highest price. The highest level is called resistance. 

This is the display indicator of Extreme Support and Resistance:

These indicators consist of two levels namely support and resistance. Resistance level in the form of the green line located at the top, while the level of support in the form of the red line is located very bottom.

If the price has already reached a support level is usually the price will test the support level. If the price is not able to penetrate the support level then it will usually be bouncing (turning direction) upward. But if the price can penetrate the support level then the price will continue to make a new support level.

Likewise, when prices had already reached a resistance level the price will stagnant there to test the resistance level. If the price is not able to penetrate the resistance level then normally the price will bounce (reverse direction) downward. But if prices can break through resistance level the price will continue to make a new resistance level. Therefore, knowing the level of support and resistance is the key to success in forex trading.

Then, how can I use these indicators in forex trading?

Note the picture below!

Entry Buy 

• When the price touch of the level support (red line) means market conditions may be oversold. 
• Wait until the candle appears bullish as confirmation.
• Do not enter the market when prices touched a new support level.
• After a bullish candle then it appears as a confirmation, immediately open buy.

Entry Sell

• When the price touch level of resistance (the green line) means market conditions may be overbought. 
• Wait until the candle is bearish as confirmation.
• Do not enter the market when prices touched a new resistance level.
• After a bearish candle then it appears as a confirmation, soon to open sell.

Note:

• The level of support or resistance is sometimes shifted according to the highest or lowest price that is formed.
• Therefore, we have to wait for confirmation of price movement so that the candle completely clear.

To download this indicator please click on the link below.

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