#StrategyTrade

Support and Resistance Strategy + Confirmation from RSI

1. Identify Support and Resistance Areas

• Support: This is the price level that, if the currency drops to it, the price often rebounds and rises.

• Resistance: This is the price level that, if the currency rises to it, the price often retraces and falls.

Example: If SXT always reaches 0.50 and jumps, this is strong support. If it reaches 0.60 and falls, this is resistance.

2. Use the RSI Indicator

• RSI = Relative Strength Index.

• If RSI is below 30 = the currency is oversold (buy opportunity).

• If RSI is above 70 = the currency is overbought (sell opportunity).

3. Entry Method:

• If the price reaches a support area and RSI is below 30 → Buy.

• If the price reaches a resistance area and RSI is above 70 → Sell.

4. Set Stop Loss:

• Place a stop loss below support if you bought, or above resistance if you sold.

• For example: Bought at 0.50, set stop at 0.47.

5. Take Your Profits:

• You can set a percentage (e.g., 10%-20%), or wait for the price to reach the next resistance.

Practical Example:

• Current price of SXT: 0.506

• Strong support at: 0.50

• RSI = 28

→ Excellent buying opportunity

• Stop Loss: 0.48

• Profit Target: 0.56 or 0.60