{"id":12296,"date":"2011-06-13T15:08:20","date_gmt":"2011-06-13T19:08:20","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=12296"},"modified":"2011-06-13T15:08:20","modified_gmt":"2011-06-13T19:08:20","slug":"forex-trade-lets-find-some-levels-of-support-shall-we","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/forex-trade-lets-find-some-levels-of-support-shall-we","title":{"rendered":"Forex Trade. Let’s find some levels of support. Shall we?"},"content":{"rendered":"

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What we can see in the above picture is a more bearish than bullish market. Once the price starts dropping, you ask yourself two questions, either I sell or find support for a possible rebound. In this case, we chose to recognize a support level. As you can see at the top left corner, the time frame of this trade is based on a 4h chart. This means you have to find the support as such, since smaller time frames will not work for a support.<\/p>\n

Now that the support level has been identified, and the price has reached that level, we move into smaller time frames to identify a long set up.<\/p>\n

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Now we find ourselves in h1 time frame, where we have now recognized the trigger of this trade, stop loss and its target. How exactly did we execute this trade?<\/p>\n

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We have mentioned our level of support in some of our previous videos and\/or blog posts. In this particular case, we identified the level of support in our 15 min chart at level .618% of our Fibonacci retracement. \u00a0The stop loss is located underneath that level. This small level of support, aids the bigger support level identified, as mentioned previously in our 4h chart. The view of this trade comes from a macro view, and follows into a micro precise entry.<\/p>\n

\u00a0The target of this trade is identified by market cycles at price levels of 1.0575. In some market cycles, we can expect major pull backs. To avoid those unnecessary \u201cheadaches\u201d we put a stop to this trade and end it as a target.<\/p>\n

If you have any questions, feel free to email at asalazar@smbcap.com<\/a>
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