Video Synopsis – Using Simple Technical Trading Levels
In the above forex trading educational video, we discuss a high-yielding and effective strategy to take advantage of trending currency pairs.
It is the simplest strategy; the horizontal line approach, we just mark the horizontal levels that occur naturally within a trending market; this is illustrated in the video above. The video discusses trend confluence and line or level confluence. Also, I discuss the fact that strong levels often occur around even numbers in the market, because big bank and institutional traders typically trade at round or even numbers.
A simple strategy to use with horizontal levels is to spot a trending market; in the video I illustrate a downtrend. We then apply the horizontal levels to the chart that have occurred as a natural consequence of the down trending market. We draw horizontal levels at turning points within the trend; we then watch these horizontal levels for price action and potential entries into the trend as the market ebbs and flows and rotates back to the horizontal levels. The confluence is that the trend is in agreement with our trading direction, and the horizontal levels also have confluence with our entry. This is an example of how forex trading strategies with support and resistance can be very effective.