Support and resistance bounce
Price action · Difficulty: Beginner
The idea
Prices often react around levels where they turned before. Support is a floor where buyers have shown up; resistance is a ceiling where sellers have.
Indicators and settings
No indicator is required. Use the desk's mark tool to draw levels, and Volume plus EMA 50 for context.
Entry rule
Mark levels that have been touched at least twice. Consider a long near support when a bullish candle closes back up off it, with the larger trend flat or rising.
Exit rule
Target the next resistance level or about 2 times your risk. Exit if support breaks on a close.
Stop-loss and risk rule
Stop a little below support (a fraction of ATR beyond the level). If it breaks, the idea was wrong: take the small loss.
Best conditions
Markets with clear, repeated turning points.
Pitfalls
- Levels are zones, not exact lines.
- Support that breaks often becomes resistance, and the reverse.
- Drawing too many levels creates false confidence.
Try it on the desk → Position-size calculator All strategies
Illustration only; ignores slippage, tax and most costs. Not financial advice.